One of the most compelling arguments in favor of ACOs is that they create the right financial incentives for physicians and health systems to invest in programs that improve patient outcomes, whereas in fee-for-service the incentive structures may financially punish hospitals for 'doing the right thing.' For instance, avoiding preventable readmissions is the right thing to do--however, in a fee-for-service system, a hospital that cuts its readmission rate in half may lose millions of dollars in revenue from those readmissions. However, in an ACO model, that same hospital would make money for each prevented readmission, and that money could be reinvested in patient care (i.e. reinvested to further reduce readmissions).
What are some specific ways that your ACOs have leveraged these new incentives to improve patient care?
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