New Breed of Vendors Look to Enable Accountable Care Organizations (ACOs)

BOSTON, March 2, 2017 /PRNewswire/ -- Successfully enabling an Accountable Care Organization is extremely challenging: There isn't one standard ACO model; there isn't one single ACO national policy; there isn't one specific map to follow to build an ACO nor measure its success. There are few if any best practices readily available for healthcare organizations to adopt and make a successful transition to value-based care (VBC) within an ACO model. This has created a strong market need for high-service solution vendors that can guide healthcare organizations (HCOs) on the ACO path.

The latest report from Chilmark Research, Vendors Enabling the ACO: Reducing the Risk of Risk-Based Arrangements, is the first report of its kind to assess the 10 leading ACO Enablement vendors in the market today. These vendors assist HCOs across the spectrum in their migration to an ACO model of care. The report will help providers better understand vendor options, including vendor capabilities, markets served and core competencies.

Despite the complexity of the ACO model, ACO growth has climbed steadily since 2012, with over 1,300 ACO contracts now executed in the U.S. Yet, this VBC model is by no means mainstream, covering only 10% of the U.S. population. Despite this relatively small number, our in-depth research uncovered a market that is far from plateauing and will see accelerated growth as both commercial and government payers look to ACO models of care as key to their efforts to rein in costs while improving quality and access to care.

The report opens by identifying key components and requirements of at-risk providers and ACOs, including a discussion of ACO market growth and historical challenges encountered. The report discusses assessment criteria and guidance on the technology requirements and hurdles faced by ACOs then takes a detailed look at the 10 specific vendors selling full ACO enablement solutions. It concludes with projections of the future market trajectory, as well as recommendations for both ACOs and the Enabler vendor niche.

The Enabler vendor niche serves a broad function in the industry by lobbying with the Centers for Medicare and Medicaid Services (CMS) and partnering with both CMS and commercial payers to help determine the future direction of VBC models. The ACO Enabler enjoys the combined attributes of several other HIT vendor types, including:

• Incumbency position of EHR vendors
• Technology range of PHM vendors
• Local and personalized services of consulting firms

"Approximately half of these vendors have established a value proposition to support a unique market sub-segment of ACOs, while the other half offer generalized solutions to the ACO and VBC market at large," said Jennifer Rogers, Chilmark Research analyst and author of this report. "We anticipate the ACO market will coalesce around the more differentiated ACO Enablers, with the non-differentiated focusing instead on other VBC services as revenue opportunities."

Based on briefings with 10 ACO Enabler vendors as well as extensive secondary research, this Market Scan Report from Chilmark Research investigates the market and technology challenges of setting up an ACO and answers the following questions:

• What technology gaps do ACOs most need to fill in order to be successful?
• What are the challenges to filling those gaps? Are they able to be filled with current technology and legacy vendors or not?
• What partners, if any, does the vendor rely on to provide technology solutions to ACOs?
• Where are ACOs overcomplicating their technology infrastructure and need to simplify solutions and vendors?
• Where do significant gaps remain that HCOs struggle to fill?

Anyone interested in better understanding the ACO model, its growth pattern and projected trajectory, as well as the vendors who support this market segment and their projected market evolution, will gain strategic insight from reading Vendors Enabling the ACO: Reducing the Risk of Risk-Based Arrangements. HCOs, payers, healthcare IT vendors, consultants, investors, patient advocates, and others will also benefit from this in-depth research report.

The report is available to subscribers of the Chilmark Advisory Service or may be purchased separately. For more information, visit www.chilmarkresearch.com/reports. Direct inquiries for purchase should be addressed to Sean Campbell at [email protected]. There is also a webinar recorded on February 14 available for viewing on the report sales page.

About Chilmark Research:

Chilmark Research is the only industry analyst firm focusing solely on the most transformational trends in healthcare IT. We combine proven research methodologies with intelligence and insight to provide cogent analyses of the emerging technologies that have the greatest potential to improve healthcare. We do not shy away from making tough calls, and are respected in the industry for our direct and thoughtful commentary. For more information visit: www.chilmarkresearch.com/

Media Contact
Jennifer Rogers
[email protected]

SOURCE Chilmark Research

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