Sebelius, Berwick Announce ACO Initiative

WASHINGTON — A multi-media blitz from HHS and CMS this week detailed a government proposal to form Accountable Care Organizations (ACOs) — entities comprised of doctors, hospitals and other health care providers to better coordinate care for Medicare patients.

On a press call yesterday, HHS Secretary Kathleen Sebelius said greater efficiencies from ACOs could yield savings of up to $960 million over a three-year period. But during a Q&A on the call, a CMS official admitted that figure could conceivably end up about $400 million lower.

ACOs are part of health care reform, as mandated by the Affordable Care Act. "Rules we are proposing today will help teams of doctors, hospitals and other health care providers form ACOs where they will be able to take full responsibility for the health of their patients," said Sebelius during her opening statement. "In return, if they meet the tough standards for health care quality, they will be able to share in savings that come with improving care coordination and improving health. This will align the way we pay for care with the kind of care we know is most effective."

The concept is to give physicians and others in the ACO a financial incentive to make sure patients get the proper care. "One in every five Medicare beneficiaries who leaves the hospital is back within 30 days," Sebelius said, adding that in many cases, "it is because they failed to receive the correct follow-up care."

According to CMS Administrator Donald Berwick, MD, "An ACO will be rewarded for providing better care and investing in the health and lives of patients. ACOs are not just a new way to pay for care but a new model for the organization and delivery of care."

For home care advocates, the idea of shifting government's focus to more effective care has been a priority for many years.

Wayne Stanfield, president and CEO of the National Association of Independent Medical Equipment Suppliers, believes ACOs are the perfect opportunity to reiterate that message. "I firmly believe that care delivered under the ACO structure will have an effect on home care providers," said Stanfield. "A large part of saving, beyond eliminating duplication of tests and services, will be reducing inpatient care through home care services. DME suppliers will need to be involved with all of their local ACOs to remain in the referral stream.