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Accountable Care Organizations Grow in Michigan

Accountable Care Organizations (ACOs) are beginning to populate Michigan’s healthcare sector. ACOs are integrated groups of hospitals, physicians, long-term care facilities and home health agencies. A provision in the Patient Protection and Affordable Care Act (PPACA) authorized provider organizations to create ACOs so long as they agree to manage care for a minimum of 5,000 Medicare patients. The purpose of the ACOs is to provide providers with a financial incentive to coordinate care and improve the quality of care.

Crain’s Detroit Business reported several ACOs forming in Michigan. The article notes that Oakwood Healthcare Inc., University of Michigan Health System, Detroit Medical Center, and Trinity Health are all in various stages of forming ACOs.

Despite their popularity, some critics fear that ACOs will prevent doctors from participating in other healthcare contracts or take away doctors’ ability to effectively negotiate.

For more information on the impacts of healthcare reform legislation or if you are interested in discussing what steps your organization would need to take to establish an ACO, please visit www.wachler.com or contact a Wachler & Associates attorney at 248-544-0888.