Skip to main content

Scripps Announces ACO-like Integrated Delivery Network

 |  By cclark@healthleadersmedia.com  
   June 13, 2011

Scripps Health has entered a partnership with North American Medical Management to build an integrated care network/accountable care organization with 14 physician groups for between 500,000 to 750,000 San Diegans.

"The Scripps IDN (integrated delivery network) will support the alignment of patients, hospitals, providers and payors in promoting care coordination," Scripps said in a Friday news release.

The network will build the infrastructure to allow Scripps and NAMM –affiliated physician groups to "respond to alternative care management arrangements."

In an e-mail Sunday, Scripps CEO Chris Van Gorder confirmed that the entity will function much like an accountable care organization. However, Van Gorder and many other hospital CEOs and physician leaders say they have too many concerns about the excessive risk and capital outlay required to qualify as an ACO under proposed rules introduced two months ago by the Centers for Medicare and Medicaid Services.


ROUNDS: The Real Value of ACOs
When: August 16, 12:00–3:00 pm ET
Where: hosted by Norton Healthcare, Louisville, KY
Register today for this live event and webcast


"We will remain skeptical (about CMS' proposed rule) until we see the new regulations introduced," Van Gorder wrote. "But we intend to continuing to pursue 'accountable care' since we believe it can reduce costs and improve quality.

"That does not mean we will end up pursing the Medicare Shared Savings program or even the Pioneer (ACO) program right now." The Pioneer program was introduced several weeks ago by CMS as an expedited ACO model for organizations that are far enough along in building their networks that they might start by fall, instead of waiting for Jan. 1.

Van Gorder said that Scripps "will probably sign a letter of intent with the Pioneer Program but might not pursue it either, depending on the final regulations."

The Scripps IDN will be a contracting entity, and one that will bear risk depending on the contract and the payor, Van Gorder said.


Webcast: Alternative ACO Strategies:  Available on demand.


Governance of the entity will be managed by a Physician Business Leader Cabinet, including affiliated medical groups, NAMM and Scripps Health, and will decide which contracts or relationships will be pursued.

The 14 Scripps-affiliated physicians groups include more than 500 primary care doctors in Southern California.

Tagged Under:


Get the latest on healthcare leadership in your inbox.