Accountable care organizations (ACOs) are becoming increasingly popular in the private sector as well as among government contracted organizations. Despite the many challenges of transitioning to a new model, private insurers are interested in the alternative payment methods and benefits ACOs provide. In fact, of the estimated 750 public and private ACOs in the US, about half of the contracts are with private insurers.
So, why is the private sector adapting to this coordinated care model? Switching from a fee-for-service model to value-based care isn’t an easy transition. Not all health systems allow for such a huge structural change. Those that do decide to take the risk, however, find ACOs effective for several reasons.
- The value-based healthcare model allows providers to address rising healthcare costs without sacrificing quality. A value-based model places the emphasis on the patient by focusing on preventative medicine and treatment plans. Instead of the fee-for-service model where frequent patient visits means better compensation for doctors, the ACO model rewards physicians whose patients have less visits.
- Today, real-time data allows everything to be analyzed thoroughly from how every penny is spent to details of patient symptoms. With accurate, reliable data to support the effectiveness of value-based models, it makes committing to the transition seem like less of a risk to private insurers.
- Value-based care and ACOs also increase cost savings. A fee-for-service model with frequent patient visits not only consumes a doctor’s valuable time, but it also wastes resources. By reducing patient visits and increasing a focus on preventative healthcare, organizations can save money and resources.
At Catholic Benefits Trust, we understand the benefits and advantages to using a value-based model. As a nonprofit organization dedicated to serving the Catholic Church, we provide improved group health plans with Catholic values in mind. Members of CBT receive full ownership of their medical data as well as a personal health management plan based on a thorough analysis of that data. We also have a team of personal health nurses to assist our members with any health-related questions or concerns.
If you’re interested in learning more about the benefits of value-based care organizations or the Catholic Benefits Trust, feel free to contact us!