The Act Establishing ACOs - Essay Example

The Act establishing ACOs having been passed by the senate recommends a preventive approach towards the provision of health care services. It is an initiative where the hospitals, patients and all the health workers form support groups that promote a sustainable approach towards the management of health care and thus save costs. The ACOs have been able to make substantial savings for patients and hospitals (McCaffrey 218). However, some doctors are forming groups without consulting local hospitals to engage in the program. Because of their conduct, a local hospital has experienced a twenty per cent drop in revenues. This massive drop in revenue may result in the hospital being unable to meet operational costs thus resulting in closure.

The first solution to the problem is that the hospital can form its own ACO. Since the hospital has access to funding as a source of capital, it can easily raise money to set up an electronic record of patients (McCaffrey 217). The hospital has trained health professionals who can handle clients. This is extremely beneficial since to hospital will not need any additional funding as it makes use of resources already at its disposal. However, this is time-consuming and since most of the patients around already belong to a functioning ACO, it would be very hard to convince them to join the new outfit.

Second, the hospital can pot to buy some of the ACOs already in operation. The hospital would spend money on the acquisition only; the rest of the infrastructure is already in place. The challenge in this case would be convincing the doctors involved to sell their venture (McCaffrey 218). The option of buying into an already established ACO would be the most appropriate. Buying existing ACOs is a low level of risk because the system is already functional and has a client base ready to receive services.