Large medical groups urge OMB to be careful with ACO budget expectations

The American Group Management Association asked the Obama administration to scale back the anticipated savings that are expected from the creation of accountable care organizations. Setting the savings bar too high, the organizations said, could cause the ACO program to be unsuccessful.  

The Hill: Providers Say ACO Estimates Are Too High
A large group of healthcare providers is pressing the White House to slash its savings estimates for a new program designed to improve the coordination and quality of care. The American Medical Group Association said the administration's hunt for maximum savings could ultimately make the program unsuccessful. The Office of Management and Budget has said the government will save $510 million from the creation of accountable care organizations, which were authorized by the healthcare reform law (Baker, 6/9). 

CQ HealthBeat: Medical Groups Ask OMB To Go Slow On ACO Expectations In Budget
An association representing large medical groups Thursday wrote the Office of Management and Budget asking that savings anticipated from Medicare accountable care organizations be scaled back in the agency's midsession review. The American Medical Group Association told OMB Director Jacob Lew that it has "serious concerns" that including a $510 million median figure for savings "would severely handicap" the Centers for Medicare and Medicaid Services (CMS) as it works on changes to a proposed ACO rule (Norman, 6/9). 

Modern Healthcare: Tucson Hospital, Docs Forming ACO
Tucson (Ariz.) Medical Center and local physicians have assembled the pieces to build an accountable care organization in southern Arizona through a partnership with Optum, UnitedHealth Group's health information technology services company.
On Thursday, the hospital and Optum announced they are creating a "sustainable health community" based on the ACO model, in which hospitals, physicians and employers and residents in a community share both the risks and rewards of coordinated healthcare delivery (Zigmond, 6/9).