Arkansas Considers ACO-Like System for State Medicaid Program
Mr. Gessow envisions allowing physicians to hold onto any savings they generate during an episode of care. The partnerships would look similar to ACOs but would not be defined specifically as such, according to the report.
Mr. Gessow's vision follows Arkansas Gov. Mike Beebe's directive that Mr. Gessow move Medicaid away from fee-for-service payment. Gov. Beebe believes the current system will not help the state improve quality and control cost, and he says the state needs to stop paying for the process of treatment and instead reward quality outcomes.
Arkansas' Medicaid trust fund means the state is not facing the same budget constraints as other areas of the country. Still, the state must control costs to avoid facing a deficit in the coming years, according to the report. Mr. Gessow's plan may provide an alternative to cutting pay, eligibility and services, a tactic many states have pursued as cost pressures increase.
Read the American Medical News report on bundled payments for Medicaid.
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