Skip to content
  • About
  • Contact
  • Contribute
  • Book
  • Careers
  • Podcast
  • Recommended
  • Speaking
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
    • All
    • Physician
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • Video
    • About
    • Contact
    • Contribute
    • Book
    • Careers
    • Podcast
    • Recommended
    • Speaking

Will the accountable care organization (ACO) be a durable part of reform?

Jim Sabin, MD
Policy
October 25, 2010
Share
Tweet
Share

Magic bullets come and go in the world of health policy, but the accountable care organization (ACO) is likely to be a durable reform. Except for group practices like Geisinger, Harvard Vanguard, Kaiser Permanente, systems like the VA, and local communities in which independent practitioners have established cooperative collaborations, health care has been grotesquely uncoordinated in the U.S. ACOs speak to that structural lesion.

Title III of the Patient Protection and Affordable Care Act puts ACOs forward as an innovation to promote the quality and efficiency of health care. “Efficiency” isn’t controversial. Doing a second MRI because the results from the first one aren’t available is pure waste. But not doing an MRI when a plain film, or a careful physical examination and history, could be “adequate,” is more complex. Some would call that “efficiency” or “evidence based practice.” Others would call it “rationing.” But there’s no uncertainty about how to label not offering an effective, and desired, service – that’s definitely rationing.

In the October 6 issue of JAMA, Dr. Robert Brook of RAND has an important brief article: “What if Physicians Actually Had to Control Medical Costs?” As a thought experiment, Brook imagines that enough money is available for a physician to treat 100 patients with condition A or condition B. Treating each patient costs $1000, and only $100,000 is available. Epidemiological data predicts that the physician will see 100 patients with A and 100 patients with B. The benefit of treating A is four times the benefit of treating B. What should the physician do?

Brook believes, and I agree, that even when we have wrung all efficiency savings out of health care, there will still be beneficial interventions physicians want to provide, and patients want to receive, that our society will not be prepared to pay for. He argues, and I agree, that the medical profession is unprepared for engaging with this eventuality:

Policy makers discuss controlling medical costs, and academics publish articles analyzing cost-control approaches. But physicians seem oblivious to the possibility that, sooner or later, care will need to be explicitly rationed. Physicians who actually order the health-related diagnostics or treatment for which taxpayers pay must decide how they will cope with explicit rationing. Will there be a physician plan or health professional plan to deal with the eventuality of explicit rationing? Should planning begin now instead of waiting until the decision is imminent?

There’s no way that the need for rationing could have been part of the federal health reform process. We’re not yet mature enough as a body politic to deal with that piece of reality without going ballistic about “death panels.” But wishful thinking and political immaturity don’t change the fact that rationing happens now, will have to be acknowledged in the future, and is an ethical requirement, not an abomination. Brook concludes, and I again agree:

…an explicit plan for rationing needs to be developed. But who will do it, and how?

Physicians (and other health professionals), patients and the wider public should be the “who?” And with regard to “how?,” the experience of the Didcot practice in the U.K. provides a model of deliberative process. With help from two ethicists, the general practice group created guidelines for the practice, reviewed them with members of the practice, and made them public.

No one wants to go first in discussing rationing. To do so would invite savage, know-nothing political attack. But it’s important for public deliberation about how to ration in a clinically guided, ethically justifiable and potentially socially acceptable manner to get underway. Accountable Care Organizations are an ideal setting for physicians and patients to join together in this kind of what if scenario planning.

Jim Sabin is a psychiatrist and director, ethics program, Harvard Pilgrim Health Care.  He blogs at Health Care Organizational Ethics.

Prev

Physicians need to consider a digital resume

October 24, 2010 Kevin 1
…
Next

ACP: Doctors as leaders – the value of civility

October 25, 2010 Kevin 4
…

Tagged as: Public Health & Policy

Post navigation

< Previous Post
Physicians need to consider a digital resume
Next Post >
ACP: Doctors as leaders – the value of civility

ADVERTISEMENT

More by Jim Sabin, MD

  • a desk with keyboard and ipad with the kevinmd logo

    3 ways Medicare can reduce overtreatment

    Jim Sabin, MD
  • a desk with keyboard and ipad with the kevinmd logo

    How waste is directly harmful to patients

    Jim Sabin, MD

More in Policy

  • Why AAP funding cuts threaten the future of pediatric health care

    Umayr R. Shaikh, MPH
  • Why private equity is betting on employer DPC over retail

    Dana Y. Lujan, MBA
  • Why PBM transparency rules aren’t enough to lower drug prices

    Armin Pazooki
  • Emergency department metrics vs. reality: Why the numbers lie

    Marilyn McCullum, RN
  • Black women’s health resilience: the hidden cost of “pushing through”

    Latesha K. Harris, PhD, RN
  • FDA loosens AI oversight: What clinicians need to know about the 2026 guidance

    Arthur Lazarus, MD, MBA
  • Most Popular

  • Past Week

    • The hidden costs of the physician non-clinical career transition

      Carlos N. Hernandez-Torres, MD | Physician
    • The gastroenterologist shortage: Why supply is falling behind demand

      Brian Hudes, MD | Physician
    • AI-enabled clinical data abstraction: a nurse’s perspective

      Pamela Ashenfelter, RN | Tech
    • Why private equity is betting on employer DPC over retail

      Dana Y. Lujan, MBA | Policy
    • Leading with love: a physician’s guide to clarity and compassion

      Jessie Mahoney, MD | Physician
    • Why voicemail in outpatient care is failing patients and staff

      Dan Ouellet | Tech
  • Past 6 Months

    • Physician on-call compensation: the unpaid labor driving burnout

      Corinne Sundar Rao, MD | Physician
    • How environmental justice and health disparities connect to climate change

      Kaitlynn Esemaya, Alexis Thompson, Annique McLune, and Anamaria Ancheta | Policy
    • Will AI replace primary care physicians?

      P. Dileep Kumar, MD, MBA | Tech
    • A physician father on the Dobbs decision and reproductive rights

      Travis Walker, MD, MPH | Physician
    • What is the minority tax in medicine?

      Tharini Nagarkar and Maranda C. Ward, EdD, MPH | Education
    • Why the U.S. health care system is failing patients and physicians

      John C. Hagan III, MD | Policy
  • Recent Posts

    • Why AAP funding cuts threaten the future of pediatric health care

      Umayr R. Shaikh, MPH | Policy
    • Oral Wegovy: the miracle and the mess of the new GLP-1 pill

      Shiv K. Goel, MD | Meds
    • Why dietary advice changes: It is not the food, it is the world

      Gerald Kuo | Conditions
    • Blood in urine after a child’s injury: When to worry

      Martina Ambardjieva, MD, PhD | Conditions
    • Managing a Black Swan in health care: a lesson in transparency

      Joseph Pepe, MD | Physician
    • Health care as a human right vs. commodity: Resolving the paradox

      Timothy Lesaca, MD | Physician

Subscribe to KevinMD and never miss a story!

Get free updates delivered free to your inbox.


Find jobs at
Careers by KevinMD.com

Search thousands of physician, PA, NP, and CRNA jobs now.

Learn more

View 3 Comments >

Founded in 2004 by Kevin Pho, MD, KevinMD.com is the web’s leading platform where physicians, advanced practitioners, nurses, medical students, and patients share their insight and tell their stories.

Social

  • Like on Facebook
  • Follow on Twitter
  • Connect on Linkedin
  • Subscribe on Youtube
  • Instagram

ADVERTISEMENT

ADVERTISEMENT

  • Most Popular

  • Past Week

    • The hidden costs of the physician non-clinical career transition

      Carlos N. Hernandez-Torres, MD | Physician
    • The gastroenterologist shortage: Why supply is falling behind demand

      Brian Hudes, MD | Physician
    • AI-enabled clinical data abstraction: a nurse’s perspective

      Pamela Ashenfelter, RN | Tech
    • Why private equity is betting on employer DPC over retail

      Dana Y. Lujan, MBA | Policy
    • Leading with love: a physician’s guide to clarity and compassion

      Jessie Mahoney, MD | Physician
    • Why voicemail in outpatient care is failing patients and staff

      Dan Ouellet | Tech
  • Past 6 Months

    • Physician on-call compensation: the unpaid labor driving burnout

      Corinne Sundar Rao, MD | Physician
    • How environmental justice and health disparities connect to climate change

      Kaitlynn Esemaya, Alexis Thompson, Annique McLune, and Anamaria Ancheta | Policy
    • Will AI replace primary care physicians?

      P. Dileep Kumar, MD, MBA | Tech
    • A physician father on the Dobbs decision and reproductive rights

      Travis Walker, MD, MPH | Physician
    • What is the minority tax in medicine?

      Tharini Nagarkar and Maranda C. Ward, EdD, MPH | Education
    • Why the U.S. health care system is failing patients and physicians

      John C. Hagan III, MD | Policy
  • Recent Posts

    • Why AAP funding cuts threaten the future of pediatric health care

      Umayr R. Shaikh, MPH | Policy
    • Oral Wegovy: the miracle and the mess of the new GLP-1 pill

      Shiv K. Goel, MD | Meds
    • Why dietary advice changes: It is not the food, it is the world

      Gerald Kuo | Conditions
    • Blood in urine after a child’s injury: When to worry

      Martina Ambardjieva, MD, PhD | Conditions
    • Managing a Black Swan in health care: a lesson in transparency

      Joseph Pepe, MD | Physician
    • Health care as a human right vs. commodity: Resolving the paradox

      Timothy Lesaca, MD | Physician

MedPage Today Professional

An Everyday Health Property Medpage Today
  • Terms of Use | Disclaimer
  • Privacy Policy
  • DMCA Policy
All Content © KevinMD, LLC
Site by Outthink Group

Will the accountable care organization (ACO) be a durable part of reform?
3 comments

Comments are moderated before they are published. Please read the comment policy.

Loading Comments...