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Are ACO’s a viable model to reduce the rate of growth in per-capita Medicaid spending? Why or why not?

ACOs are a viable model to reduce the rate of per-capita Medicaid spending because they provide a framework for achieving efficiency and minimizing the costs associated with service delivery. The first way through which ACOs can reduce spending is by taking healthcare services closer to patients. Contracted care providers are able to provide services to patients within their locality more easily and cheaply, while patients are able to receive services quickly. By providing services in time, it is possible to avoid deterioration of patient conditions, which can result in incurring more treatment expenses. Secondly, state Medicaid agencies only pay for patient outcomes rather than services, which help to protect consumers from greedy service providers that charge patients without providing the right treatment. Consequently, service providers will improve the quality of services they provide, and in doing so help patients to avoid unnecessary payments associated with hospital readmissions. Thirdly, according to what has been gather by [nurse writers for hire][1], the ACOs model allows for the integration of payment methods, thus allowing states to regulate healthcare costs. This is achieved by ensuring that there are standard payments for different services, which help to cushion patients from being overcharged. Finally, the arrangements whereby the organizations share the cost savings provide an incentive to manage care delivery more efficiently to reduce costs and increase the savings pool.

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