Arkansas Considers ACO-Like System for State Medicaid Program

Arkansas Medicaid Director Eugene Gessow envisions transforming the state's Medicaid program by paying teams of physicians and other health professionals based on episodes of care, according to an American Medical News report.

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.

Related Articles on Coding, Billing and Collections:
UPMC Highmark Still Can't Reach Agreement
Illinois Panel Approves Temporary Health Insurance Plan for State Workers
North Dakota Lawmakers Draft Legislation for Health Insurance Exchange

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Webinars

Featured Whitepapers

Featured Podcast