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How Price Transparency Helps Accountable Care Manage Costs
A new study suggests that primary care providers participating in an accountable care organization (ACO) and having greater engagement with patients transparency into the cost of services and procedures have the ability to bend the healthcare cost curve by an 8 to 1 margin in terms of return on investment (ROI).
A new study suggests that primary care providers participating in an accountable care organization (ACO) and having greater engagement with patients transparency into the cost of services and procedures have the ability to bend the healthcare cost curve by an 8 to 1 margin in terms of return on investment (ROI).
“To improve overall cost, providers should partner with hospitals to reduce both utilization and unit cost of services. Although ACOs sponsored by physician groups have seen more growth recently, the majority of ACOs are still sponsored by hospitals,” writes the author, Anthony Akosa, MD, MBA.
“To remain competitive in the post health care reform environment, these hospital-sponsored ACOs have to reduce overutilization of services and lower their pricing,” he continues. “The lost revenue from reducing unit cost and decreasing overutilization of services could be recouped from the shared savings agreements with payers.”
Read the full story here: http://bit.ly/1baFjZw
Source: EHR Intelligence
Managed Care Reflections: A Q&A With A. Mark Fendrick, MD, and Michael E. Chernew, PhD
December 2nd 2025To mark the 30th anniversary of The American Journal of Managed Care (AJMC), each issue in 2025 includes a special feature: reflections from a thought leader on what has changed—and what has not—over the past 3 decades and what’s next for managed care. The December issue features a conversation with AJMC Co–Editors in Chief A. Mark Fendrick, MD, director of the Center for Value-Based Insurance Design and a professor at the University of Michigan in Ann Arbor; and Michael E. Chernew, PhD, the Leonard D. Schaeffer Professor of Health Care Policy and the director of the Healthcare Markets and Regulation Lab at Harvard Medical School in Boston, Massachusetts.
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