Medicare ACOs Grow 38% in Six Months

Physical Therapists are keenly interested in the possibility of Medicare Accountable Care Organizations (ACO).

Private practice and corporate-owned rehabilitation companies are especially interested since we are not considered ACO Providers - but, we can partner with large physician practices and hospitals to provide therapy services and share in any cost savings.

ACOs have grown 38% in the last six months, according to a new report titled Growth and Dispersion of Accountable Care Organzations: June 1012 Update.

"Located in 45 states and the District of Columbia, ACOs total 221 partnerships, up from 160 ACOs in 40 states in November 2011..."

I think ACOs offer physical therapists an unrivaled opportunity to compete on the basis of:

1. better costs
2. better patient satisfaction
3. better safety
4. and better outcomes

...that's actually about the correct order - cost and satisfaction before safety and outcomes.

Can anyone suggest a better order?

High Cost Hospitals Realize That "The Jig Is Up..."

Over at the Health Care Blog, some physical therapists might find this dialogue interesting.

It's between a large hospital Chief Operating Officer (COO) and an independent Health Information Technology (HIT) consultant...

Consultant: "Why on earth would you want to form a Medicare Accountable Care Organization (ACO)?

You’re a monopoly. You’re making tons of money. You can keep doing this for some period of time."

Hospital COO: “Look I understand that the jig is up (since healthcare reform passed). 

I know how to take $60 (of costs) out per member per month. $60 - - out of my cost structure. I know exactly how to do it. 

I never had a motivation to do it before - - until health care reform happened."

Who else believes that physical therapists can take additional costs out of high-cost hospitals as we replace physicians using rules-based decision algorithms to make diagnoses and order x-rays and magnetic resonance imaging (MRI)?

Please comment and let's hear your thoughts.