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April 2011

 
 

Key Uncertainties of the Proposed ACO Rule

A Polsinelli Shughart Update

 

The proposed rule implementing the Medicare Accountable Care Organization (ACO) Program (also referred to as the Shared Services Program) raises many questions and concerns among healthcare stakeholders. The following is a brief description of the major issues that are likely to be the subject of widespread public comment. It is important to note that after the opportunity for the public to provide comments to CMS and to the other agencies involved in the ACO program, the final ACO rule may look very different when published later this year. The public comment period extends through June 6, 2011.

Some of the key uncertainties of the proposed rule include:


 

Fraud and Abuse

CMS and OIG have proposed waivers of the application of the Stark Law, the federal Anti-Kickback Statute, and the Gainsharing CMS with regard to distributions directly related to the ACO's participation in the program. Additional waivers may apply if the party can establish that the payment or relationship meets one of the Stark Exceptions. More ...

Antitrust

In substantive terms, the Patient Protection and Affordable Care Act (PPACA) Sec. 3022 eligibility criteria regarding structure, governance and use of clinical and administrative processes are deemed "broadly consistent with the indicia of clinical integration" so as to warrant a flexible rule of reason antitrust treatment for participating ACOs. In procedural terms, it may be optimistic to assume that the agencies' antitrust review process (which is voluntary for ACOs with Primary Service Area share between 30-50 percent and is mandatory above a 50 percent share) can reliably be concluded within the stated 90-day review period. More ...

State Insurance Laws

The proposed rule outlines two alternative "tracks" by which ACOs can receive a share of savings from the delivery of health care services to Medicare fee-for-service beneficiaries. Under both tracks, however, the ACO would also bear risk and be responsible for financial losses – so CMS plans to make the "shared savings" proposition a two way street. More ...

Administrative Costs

Participation in the Shared Savings Program through an ACO is clearly not for every provider community, as participating organizations will need to develop and operate sophisticated systems to measure and promote quality, promote clinical integration and the use of evidence-based medicine, enhance care coordination, and standardization, and create and manage a host of operational and financial systems. More ...

What's My Role?

As a hospital, you are eligible to form ACOs and participate in the Program. The role you play as a physician in the Program depends on what type of physician you are. The role other health care providers and suppliers will play in the Program is less clear, but is one where CMS invites comment. More ...

Integrated Care Initiatives Beyond ACOs

The ACO program is an important initiative from many perspectives. It would be incorrect, however, to assume that the ACO program is the culmination of the federal integrated care efforts under PPACA. Rather, it is simply the beginning. Other integrated care efforts will follow. More ...

For More Information

If you would like more information on this topic, please contact:

 

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