Physicians Have Bigger Stake In Patients' Total Care Under Medicare ACOs

One year after the passage of health care reform, recommendations around some of the more far-reaching elements of the legislation are beginning to emerge. One proposal biopharmas cannot afford to ignore: Medicare sanctioned accountable care organizations.

One year after Congressional passage of health care reform, recommendations centered around the more far-reaching elements of the legislation are beginning to emerge. One proposal biopharma companies cannot afford to ignore is tied to Medicare-sanctioned accountable care organizations (ACOs), which implement the "shared savings program" mandated by the Affordable Care Act. In a widely-anticipated document authored by the Centers for Medicare and Medicaid Services (CMS) and released March 31, the federal agency outlines a new payment model that could help solve one of the biopharmaceutical industry's thorny problems, drug compliance, which if improved, would likely boost product sales.

As outlined, the program represents a major change in the way Medicare pays for medical products and services, using financial...

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