Employers are no longer providing the rich open network plans to their employees. Instead, many employer sponsored plans have smaller networks and the employee is responsible for paying more out-of-pocket expenses as the deductibles are now significantly high. Additionally, as the United States population ages into Medicare and Medicaid in many states is expanded, the opportunity for revenue for many healthcare organizations is shrinking. According to Kaufman (2011), with the diminished opportunity to shift costs, healthcare organizations need to maximize their ability to generate income now in order to fund long-term transformations. It is Kaufman’s belief that the primary source of income for the transformation is from cost-shifting. Companies that are successful implementing an ACO are ones that develop physicians, hospitals, and other care providers that are trained to provide highly effective and efficient care that is both of the highest quality and delivered at the lowest cost possible (Kaufman, 2011).
Employers are no longer providing the rich open network plans to their employees. Instead, many employer sponsored plans have smaller networks and the employee is responsible for paying more out-of-pocket expenses as the deductibles are now significantly high. Additionally, as the United States population ages into Medicare and Medicaid in many states is expanded, the opportunity for revenue for many healthcare organizations is shrinking. According to Kaufman (2011), with the diminished opportunity to shift costs, healthcare organizations need to maximize their ability to generate income now in order to fund long-term transformations. It is Kaufman’s belief that the primary source of income for the transformation is from cost-shifting. Companies that are successful implementing an ACO are ones that develop physicians, hospitals, and other care providers that are trained to provide highly effective and efficient care that is both of the highest quality and delivered at the lowest cost possible (Kaufman, 2011).