ACO Options to be Explored by Two Texas Health Systems

Texas Health Resources and Methodist Health System have signed an agreement to study the possible formation of a multi-provider accountable care organization.

The specific structure of the organization is not yet defined. The signed agreement allows the two health systems to form work groups to explore possible models for collaboration. According to Wendell Watson, THR spokesperson, it's too early to tell if the two health systems will follow the ACO model as defined by the federal Affordable Care Act. "The work groups will address that question. It's possible that we could use multiple models."

Although the regulations aren't final, an ACO as envisioned in the ACA will be a legal entity that includes a hospital and physicians that will, among other tasks, coordinate care, improve patient outcomes, and help reduce costs.

While 91% of healthcare organizations do not have an ACO today, 64% are planning one, and 39% will launch one by the end of 2012, according to a recent HealthLeaders Media Intelligence Report.

Watson said that when THR launched it 10-year strategic plan in 2006, one of its stated goals was to become an integrated provider and coordinator of care. "We've been looking at how we could collaborate with other providers and health systems to change how healthcare is delivered."

Although Texas Health Resources and Methodist Health System are both Dallas-based, their service areas don't overlap in north Texas, explained Kathleen Beathard, Methodist Health spokesperson. "We're complementary. In the current environment it makes sense for us to look at ways to come together."

Beathard stressed that the agreement is the beginning of a process to identify how the two health systems might work together.  "It's still possible that we won't find the right model or the projects."

The nonprofit hospitals systems already co-sponsor CareFlite, an air and ground medical transport, and participate in the North Texas Hospital Laundry Cooperative.

Both organizations have participated in ACO preparatory projects with Premier Inc., a national health care performance improvement alliance.

The 14-hospital Texas Health Resources includes the Texas Health Presbyterian, Texas Health Arlington Memorial and Texas Health Harris Methodist family of hospitals. It also includes the Texas Health Physicians Group.

The four-hospital Methodist Health System includes medical centers in Dallas, Charlton, Mansfield and Richardson. It also includes the MedHealth physician group.

See Also:
Leaders Respond to CMS' Proposed ACO Regulations
The Bridge to Accountable Care Organizations
AMA Releases ACO Guidelines