Health Information Management

News: No cost savings associated with ACO demonstration, study says

CDI Strategies, October 11, 2012

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Although Accountable Care Organizations (ACO) showed an improvement in the quality and performance targets related to diabetes, they showed only minimal, one-percent reduction in costs, according to a recent study published in the October edition of HealthAffairs.

Study authors used a computer simulation model called Archimedes to analyze outcomes of an “average” ACO. Archimedes simulated outcomes of individuals based on variables contained in set performance measures and calculated health and cost implications based on current levels of care.
 
CMS hopes ACOs will achieve an estimated savings of $800 million for all participating organizations but authors of the study indicate that such savings would require additional quality improvement activities.



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