ACOs unite rivals, but build potential for monopoly

Accountable care organizations (ACO) are bringing together rival hospitals, but are also spurring fears of healthcare monopoly, according to an article from FierceHealthcare. More than 250 ACOs have formed since the 2010 Affordable Care Act passed. Proponents of ACOs note that the new partnerships create benefits such as coordinated care, while others worry about the anti-competitive effects.

ACOs such as OneCare Vermont Accountable Care Organization, the first statewide ACO in the country, provide care for tens of thousands of Medicare beneficiaries. The Department of Justice and the Federal Trade Commission conduct cost-benefit analyses in weighing the anti-competitive effects of the ACO against the benefits to determine whether collaborations are establishing a monopoly on the area’s healthcare system.