Health reform implementation

Hospitals say ACOs will cost millions more than expected

{mosads}The AHA estimate is based on a study that was completed before the ACO regulations were released.

Supporters believe ACOs will save money and improve quality by paying doctors based on performance instead of paying for individual procedures. Savings from the programs will be shared between Medicare and the participating healthcare providers.

Medicare should adjust hospitals’ share of the savings to reflect the high cost of participation, AHA said.

The hospital group’s findings came on the heels of a major blow to the ACO program. Several large, integrated health systems said last week that had serious concerns about the way the program is structured.