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Accountable Care Organizations: Financial Advantages of Larger Hospital Organizations

Camargo, Rodrigo MD, MS; Camargo, Thaisa MS; Deslich, Stacie MA, MS; Paul, David P. III DDS, PhD; Coustasse, Alberto DrPH, MD, MBA, MPH

doi: 10.1097/HCM.0000000000000004
Article

Accountable care organizations (ACOs) 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 this study suggest that ACOs based in a larger hospital organization are more likely to meet Centers for Medicare and Medicaid Services criteria for formation because of financial and structural assets of those entities.

Author Affiliations: Health Care Administration Program, College of Business, Marshall University Graduate College, South Charleston, West Virginia (Dr Camargo, Ms Camargo, Ms Deslich, and Dr Coustasse); and Department of Marketing and International Business, Monmouth University, West Long Branch, New Jersey (Dr Paul).

The authors have no conflicts of interest.

Correspondence: Alberto Coustasse, DrPH, MD, MBA, MPH, Health Care Administration Program, College of Business, Marshall University Graduate College, 100 Angus E. Peyton Dr, South Charleston, WV 25303 (coustassehen@marshall.edu).

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