ACO Insider

Distribution based on contribution: The merit-based ACO shared savings distribution model


 

Conclusion

Even at this dawning of the movement to value-based reimbursement in health care, a framework for a fair merit-based shared savings distribution is available to all ACOs. As ACOs gain actual performance data, their health information technology capabilities improve, and refined quality and efficiency metrics emerge, the process will evolve from an open and good-faith application of the guiding principles with limited tools, to more and more refined determinations of the sources of the ACO’s quality and savings results. The path will get easier over time, but the destination is always clear – distribution in proportion to contribution.

Mr. Bobbitt is a senior partner and head of the Health Law Group at the Smith Anderson law firm in Raleigh, N.C. He has many years’ experience assisting physicians form integrated delivery systems. He has spoken and written nationally to primary care physicians on the strategies and practicalities of forming or joining ACOs. This article is meant to be educational and does not constitute legal advice. For additional information, readers may contact the author (bbobbitt@smithlaw.com or 919-821-6612).

Pages

Recommended Reading

Family medicine the most recruited specialty
MDedge Internal Medicine
Four different PCV13 schedules yield similar antibody levels
MDedge Internal Medicine
Cardiovascular ‘polypill’ improved medication adherence, hypertension
MDedge Internal Medicine
Bariatric surgery doesn’t cut health care costs
MDedge Internal Medicine
LDCT detects threefold more early lung cancers
MDedge Internal Medicine
Rate of avoidable heart disease deaths highest in blacks
MDedge Internal Medicine
Predictive models revealed lung nodules’ cancer risks
MDedge Internal Medicine
Teen drug and alcohol use decline, but more adults using marijuana
MDedge Internal Medicine
No increase in cardiovascular risk seen after radiation therapy for DCIS
MDedge Internal Medicine
Lasers promising for onychomycosis treatment
MDedge Internal Medicine