Scenario: Your hospital has an opportunity to participate with an Accountable Care Organization (ACO) contract with 50,000 ACO patients. The ACO patient population expects about 5,000 avoidable hospitalizations per year with a potential savings of $50 million, which will be shared 50% revenue to the insurer and 50% revenue to the hospital. The ACO patient population will require an average of 6 office visits per year, and 300,000 total office visits will need to be supplied by your primary care workforce.

Financial Data

here is the spreadsheet provided that must be filled out

ACO revenue: Number of ACO patients 50,000 Potential savings: Number of avoidable hospitalizations per patient Total avoidable hospitalizations per year Cost per avoidable hospitalization Total cost of avoidable hospitalizations 0.1 5,000 $10,000 $50,000,000 Demand for healthcare/utilization: Number of office visits per patient 6 Total office visits per year 300,000 Supply of workforce/expense: Employed providers (salary) Physician salary per year Nurse practitioner salary per year Contracted providers (fee-for-service) Physician fee per visit Nurse practitioner fee per visit Productivity: Physician visits per year Nurse practitioner visits per year Financial incentives: Salary bonus to ensure efficiency Bonus fee per visit to ensure efficiency $200,000 $100,000 $100 $50 3,000 2,000 10% $1 ACO revenue: Number of ACO patients 50,000 Potential savings: Number of avoidable hospitalizations per patient Total avoidable hospitalizations per year Cost per avoidable hospitalization Total cost of avoidable hospitalizations 0.1 5,000 $10,000 $50,000,000 Demand for healthcare/utilization: Number of office visits per patient 6 Total office visits per year 300,000 Supply of workforce/expense: Employed providers (salary) Physician salary per year Nurse practitioner salary per year Contracted providers (fee-for-service) Physician fee per visit Nurse practitioner fee per visit Productivity: Physician visits per year Nurse practitioner visits per year Financial incentives: Salary bonus to ensure efficiency Bonus fee per visit to ensure efficiency $200,000 $100,000 $100 $50 3,000 2,000 10% $1