Don’t bet the ranch on ACOs

If most of these 10 respected institutions struggled over 5 years to generate incentive payments from Medicare, the prospect of other ACOs succeeding financially is grim indeed.

This is sobering news for physicians, hospitals, and other providers who are planning to invest their time, money, and efforts into forming ACOs. Based on the data derived from the government’s own pilot project, successful implementation of the ACO concept will be very difficult—and will lead to higher overall health care costs.

The government has already demonstrated that the ACO concept is doomed to fail. Let’s heed the warning signs. Resist the urge to put your hard-earned cash at risk with a government-sponsored health care system—especially one that protects Congress and fails to adequately address issues such as preventive medicine, cost-effective care, and tort reform.