May 18 2011
According to the American Hospital Association, the formation of accountable care organizations will cost millions more than Medicare projected. Meanwhile, PoliticoPro reports on how CMS might respond to the complaints.
The Hill: Hospitals Say ACOs Will Cost Millions More Than Expected
Hospitals want to see more money from integrated care systems established under health care reform, saying the programs will cost millions more than what Medicare projected. The American Hospital Association (AHA) said the Medicare agency dramatically underestimated the cost of establishing and running an accountable care organization, or ACO. Recent regulations on ACOs said they'll likely cost hospitals about $1.8 million in the first year (Baker, 5/16).
Politico Pro: ACO Complaints Could Force A Do-Over
The backlash from health care providers against the accountable care organizations rule is getting so bad that some are wondering if it needs a do-over. Rather than moving on from the proposed rule to a final regulation — the usual path for new rules — there's now another scenario industry officials are contemplating: another proposed rule. They're thinking that with all of the criticism CMS is getting from prominent provider groups, a lot of work will be required to get the necessary participation (Feder, 5/17).
 This article was reprinted from kaiserhealthnews.org with permission from the Henry J. Kaiser Family Foundation. Kaiser Health News, an editorially independent news service, is a program of the Kaiser Family Foundation, a nonpartisan health care policy research organization unaffiliated with Kaiser Permanente.
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