Becker’s Hospital Review: Financial Modeling: Predictive Insight Into Value-Based Care Success

Since the Patient Protection and Affordable Care Act passed in
2010, healthcare provider organizations have explored sharing in
cost savings with other providers and/or payors and taking on risk
through accountable care organizations and other value-based care models.
While the ACO model has flourished as of late, many hospitals and health
systems are still reluctant to join the movement. In fact, 75 percent of
hospitals polled by the Commonwealth Fund were not considering ACO
participation at all, according to a report published in August 2012.
The hesitancy is understandable: Accountable care is a threat to traditional
hospital and health system revenue streams. But Eric Olmsted, PhD, director
of analytic consulting for Lumeris, a healthcare technology firm, says
not participating in the new care delivery model may be even worse.