To deliver healthcare services, an ACO needs to create a competent workforce that can provide healthcare to the patients that are in the ACO. Some integrated ACO entities already have employed physicians and mid-level providers that receive salaries from the organization, whereas other non-integrated ACO entities need to invest in external relationships with independent physicians and other providers. Since ACOs do not have managerial control over non-employed providers, additional controls and incentives may be necessary to ensure that efficiency is maximized. ACOs also need to consider the number and mix of specialists (e.g., family practice vs internal medicine) and mid-level providers (e.g., physician assistants and nurse practitioners) in delivering primary care services that can promote value. Maximizing value requires appropriate workforce decisions on supply and incentives to encourage providers to minimize costs. For this Assignment, examine the Week 2 Assignment document and consider the efficiency in the supply of health services.

To prepare for this Assignment, review the scenario and Week 2 Assignment document provided to you by the Instructor. Based on the financial data, conduct a financial projection (revenues, expenses, and profit) which analyzes the efficiency in the supply of health services.

The Assignment

In a 2- to 3-page Word document that includes tables and/or calculations, make recommendations on the following: 1) number of physicians and nurse practitioners (assume an equal number of physicians and nurse practitioners); 2) reimbursement method: salary or fee-for-service; 3) recommendations for financial incentives to address challenges of supplier-induced demand and ensure efficiency. Interpret the net profit from the ACO contract based on your recommendations. Support your recommendations with rationale, including how the financial calculations impacted your recommendations.

General Guidance on Assignment Length: Your Assignment should be 23 pages in length. Refer to the Week 2 Assignment Rubric for grading elements and criteria. Your Instructor will use the rubric to assess your work.