…or is the Government Rearranging Deck Chairs on the Titanic?

Check out this News Alert from our partner Haynes and Boone, LLP: 

The Centers for Medicare and Medicaid Services (CMS) announced the creation of so-called “Pioneer ACOs” on May 17 in an attempt to blunt heavy criticism over the draft regulations on Accountable Care Organizations (ACOs) issued on March 31, 2011 (the “Draft Regulations”). The Draft Regulations have been criticized due to their burdensome data collection requirements, large start-up costs, uncertain savings, possible loses and troublesome governance mandates.

ACOs, which are a cornerstone of the Patient Protection and Affordable Care Act, are supposed to bring hospitals, physicians and health systems together to increase quality and decrease costs. However, the Draft Regulations contain so many objectionable elements that even institutions that were the inspiration for the concept – the Cleveland Clinic, the Mayo Clinic, Intermountain Healthcare and the Geisinger Health System – have announced they are not likely to start an ACO unless major changes are made.

To read the full alert, please visit the Publications section of our website.