Bruce Hallowell, Managing Director at Navigant, discusses the importance of ACOs as they gain more prominence within the healthcare industry. Hallowell discusses why the active consideration of past algorithms and struggles helps pave the way for the creation of future opportunities regarding patient engagement and revenue cycle advancement.
Hallowell states, “An ACO is trying to make people accountable for the outcomes but it doesn’t drive patient behavior. They’re two separate animals. The way it’s structured, I have to get the patient somewhat engaged to the health organization if I’m going to make money. ACOs are really capitation at a service level at times. It’s a requirement of how it’s going to end up working. If I can’t control the patient’s behavior and engagement, the patient is going to go wherever they want to go. What that means is that the ACO will be unsuccessful in cutting cost.”