Accountable care organizations are groups of providers who agree to accept the responsibility for elevating the health status of a defined group of patients, with the goal of enabling people to take charge of their health and enroll in shared decision-making with providers. The large initial investment required (estimated at $1.8 million) to develop an ACO implies that the participation of large health care organizations, especially hospitals and health systems, is required for success. Findings of the study suggest that ACOs based in a larger hospital organizations are more likely to meet CMS criteria for formation because of financial and structural assets of those entities.
Paul III, D., Camargo, R., Camargo, T., Deslich, S., Coustasse, A., (2014, March) Financial advantages of hospitals’ relationships with accountable care organizations. In proceedings of the Business and Health Administration Association Annual Conference 2014, Chicago, IL. 89-97.