Hospital Executives Slow to Adopt ACO Model

Almost half of 206 hospital executives polled in a recent survey said they do not intend to use an accountable care organization (ACO)-like model in their health systems. Only 20% of those polled currently participate in an ACO.

According to the official Purdue Healthcare Advisors report on the survey results, executives are waiting for ACO models that are more stable and mature, in order to avoid having to reinvest funds to implement changes or updates, according to the survey. The executives who do not have plans to implement an ACO model in the future (46%) cited the following reasons:

• More than half (52%) feel there are too many unknowns and want to see stronger evidence and a consistency of successful models
• Almost half (49%) feel their hospital is too small for an ACO-like model
• 26% state that the financial investment outweighs the potential incentives or bonuses at this time
• 13% feel the performance benchmarks are not realistic for their hospital
• 4% are concerned that the transition would overwhelm staff

The findings also identified financial concerns and available resource capabilities for the support of electronic health records as reasons for executives’ reluctance regarding ACO models.

“This survey has identified a significant need for advocacy and education to support hospitals and help them survive the wave of changes brought on by the Affordable Care Act,” said Mary Anne Sloan, director of Purdue Healthcare Advisors, in a public statement. “Hospital executives are charged with enhancing patient care and managing margins with a shrinking workforce and diminishing patient volumes.”

Around the Web

Survey: Hospitals Slow to Adopt Accountable Care, Form ACOs [EHR Intelligence]

Survey reveals hospital executives reluctant to implement ACO models [Purdue Healthcare Advisors]