This brief provides a financial analysis of the ACO opportunity, including a breakdown of return on investment and cash flow possibilities. ACO participation will require deep integration of providers in order to maximize financial results. The brief also shares a review of the infrastructure needs for ACO participation, the necessary information and analytics stages for an ACO, and FAQ.

For more thought leadership about Accountable Care Organizations, please visit the PwC healthcare reform site at www.pwc.com/healthreform.

For a quick look at what to consider when deciding on ACO participation:

Partnering with other providers:

• Mitigating risk
• Integrating care
• Improving quality
• Sharing infrastructure

Financial incentives:

• Building compensation strategies
• Shifting hospitals from fee-for-service to global pricing or other forms of risk sharing
• Aligning incentives
• Implementing timely claim cost monitoring and feedback to practitioners

Costs of care:

• Reducing variable costs
• Reducing operating expenses throughout the health system

Beneficiaries:

• Attracting more beneficiaries to the network could increase profits