WASHINGTON — Four physician membership organizations today released “Joint Principles for Accountable Care Organizations”
(ACOs). Care delivered through ACOs may help improve quality of care,
increase efficiency, and reduce overall health care spending.
The four groups – the American Academy of Family Physicians (AAFP),
the American Academy of Pediatrics (AAP), the American College of
Physicians (ACP) and the American Osteopathic Association (AOA) –
represent some 350,000 physicians. The family physicians, pediatricians,
internists and osteopathic physicians represented by the four
organizations provide the vast majority of primary care services to
children, adolescents, and adult patients in the United States.
“The AOA is honored to join with the other primary care physician
organizations in support of new principles for accountable care
organizations. The fact that the organizations representing a majority
of the nation's primary care physicians have unified behind these
principles signals our belief that, if implemented correctly,
accountable care organizations can improve the health of patients and
the viability of the health care delivery system,” said Karen J.
Nichols, DO, president of the American Osteopathic Association.
The 21 principles describe important aspects to consider when
building the administrative structure of ACOs, as well as how payment
should be facilitated. The four organizations developed the principles
through an extensive collaborative process to reflect those attributes
they believe are essential for the effective implementation of the ACO
model within the health care system. The principles state that primary
care should be the foundation of any ACO and that the recognized patient
and/or family-centered medical home is the model that all ACOs should
adopt for building their primary care base.
The new joint principles define key characteristics of effective accountable care organizations. The principles include:
Structure of the ACO
- They demonstrate strong leadership among physicians and other health care professionals.
- Organizational relationships and all relevant clinical,
legal, and administrative processes within ACOs are clearly defined and
- They include processes for patient and/or family panel input in relevant policy development and decision making.
- They include a commitment to improving the health of the
population served through programs and services that address needs
identified by the community.
- They provide incentives for patient and/or family engagement in their health and wellness.
- Participation by physicians, other healthcare professionals, and patients/families is voluntary.
- Nationally-accepted, reliable and validated clinical
measures are used to measure performance and efficiency and evaluate
- They implement clinically integrated information systems to
provide relevant information at the point of care and assist in care
- Barriers to small practice participation are addressed and eliminated.
- They are adequately protected from existing antitrust,
gain-sharing, and similar laws that currently restrict the ability of
providers to coordinate care and collaborate on payment models.
- They promote processes to reduce administrative complexities and related unnecessary burdens.
- The payment models and incentives implemented align mutual accountability at all levels.
- The payment models and incentives implemented adequately
reflect the relative contributions of participating physicians and other
health care professionals.
- The payment models used recognize effort required to
involve family, community/educational resources and other pertinent
entities and activities related to care management/care coordination of
patients with complex conditions.
- Recognition and rewards for the ACO’s performance are based
on processes that combine achievement relative to set target levels of
- Practices participating within ACOs that achieve
recognition as medical homes by NCQA or other nationally accepted
certification entities should receive additional financial incentives.
- The structure adequately protects ACO physicians and other health care professional participants from “insurance risk.”
- They employ a variety of payment approaches to align the
incentives for improving quality and enhancing efficiency while reducing
The joint principles for Accountable Care Organizations may be found here
The AAFP, AAP, ACP and AOA have sent their joint principles to
the Centers for Medicare and Medicaid Services’ (CMS) to encourage their
use as CMS outlines ACO demonstration projects, as well as to guide
related ACO activities offered through the newly established CMS Center
for Medicare and Medicaid Innovation.
“On behalf of patients, the AAFP is pleased to join our medical
specialty colleagues in outlining principles to guide the development
of accountable care organizations,” said Roland Goertz, M.D., MBA,
FAAFP, president of the AAFP. “If implemented correctly, ACOs may help
improve quality and efficiency of care and reduce costs while
strengthening the patient-physician relationship in the context of a
patient-centered medical home.”
“The AAP urges adoption of these principles by governments,
payers, providers and all others who are involved in the health,
well-being and success of America's children and their families,” said
O. Marion Burton, MD, FAAP, President of the AAP. “Maintaining the
patient-centered and familycentered medical home as the anchor, these
principles, if followed, allow for optimal integration, care
coordination and patient management across the spectrum of clinical
services. The result is getting all the care that is needed, when it is
needed, how it is needed without duplicity, redundancy, insensitivity or
The Medicare Payment Advisory Commission (MedPAC) has called
for the testing of the ACO model, and the recently passed health care
reform legislation allows physicians and other health care professionals
to organize as ACOs under Medicare beginning in 2012. The same
legislation also establishes a pediatricdemonstration project that
allows qualified pediatric providers to choose to be recognized and
receive payments as ACOs under Medicaid.
In summary, ACP President J. Fred Ralston Jr., MD, FACP
emphasized, "The consideration of these joint principles in developing
accountable care organizations will help ensure that the care provided
will be patient-centered, effectively integrated and of high quality."
Founded in 1947, the AAFP
94,700 physicians and medical students nationwide. It is the only
medical society devoted solely to primary care. To learn more about the
specialty of family medicine, the AAFP's positions on issues and
clinical care, and for downloadable multi-media highlighting family
medicine, visit www.aafp.org/media
. For information about health care, health conditions and wellness, please visit the AAFP’s award-winning consumer website, www.FamilyDoctor.org
The American Academy of Pediatrics is an organization of 60,000
primary care pediatricians, pediatric medical subspecialists and
pediatric surgical specialists dedicated to the health, safety, and well
being of infants, children, adolescents and young adults. For more
information, visit www.aap.org
. Follow the AAP on Twitter
The American College of Physicians
is the largest medical specialty organization and the second-largest
physician group in the United States. ACP members include 130,000
internal medicine physicians (internists), related subspecialists, and
medical students. Internists specialize in the prevention, detection,
and treatment of illness in adults. Follow ACP on Twitter and Facebook.
The American Osteopathic Association
proudly represents 70,000 osteopathic physicians (DOs) practicing in 31
specialties and subspecialties, promotes public health, encourages
scientific research, serves as the primary certifying body for DOs and
is the accrediting agency for all osteopathic medical schools and health
care facilities. More information on DOs/osteopathic medicine can be found here
The American Academy of
Pediatrics is an organization of 60,000 primary care pediatricians,
pediatric medical subspecialists and pediatric surgical specialists
dedicated to the health, safety and well-being of infants, children,
adolescents and young adults. For more information, visit www.aap.org.