Assignment -

For decades, the Medicare fee-for-service payment system has been paying providers based on volume of services. The implementation of a value-based payment program is a major paradigm shift for healthcare providers in the United States. The ACA promotes the formation of ACOs and across the nation, hospitals and providers are positioning themselves for the future through mergers and purchases of physician practices with the goal of becoming integrated systems. Health economists have expressed concerns that the formation of ACOs will limit competition among healthcare providers, drive up costs, and limit patient choice.

What is the impact of this paradigm shift on patients/consumers, providers, and hospitals. What are the benefits and disadvantages for the three groups? How do you think the commercial payers/health plans will react to the CMS value-based payment models? What are the advantages and disadvantages of the formation of ACOs from a societal point of view?