Published On: Mon, May 18th, 2015

Accountable Care Enrollees to Triple by 2020

National Center for Policy Analysis — David Muhlestein of Leavitt Partners predicts that the number of patients enrolled in Accountable Care Organizations (ACOs) will rise from 23.5 million today to 72 million in 2020.

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The concept of ACOs appears to have originated in the federal government, which encouraged providers to create ACOs to improve the quality of care and move away from the Fee-For-Service (FFS) model under which Medicare has traditionally operated.  However, the concept of ACOs is now being used in the commercial and Medicaid market. According to Mr. Muhlestein, only 7.8 million current ACO beneficiaries are enrolled in Medicare ACOs.

Although the results of Medicare ACO’s is “mixed” at best, ACOs, as currently designed, are not likely to succeed because they rely on a distant and centralized government bureaucracy to determine value.

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