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Issue 79
08/28/2026
Appetizers (to whet your appetite)
Palate Cleanser (aka the melon part of the meal)
The Main Course
A Digestif or two
Brought to you hot off the stove, from a variety of specialties. Delivered in super tasty, bite-sized morsels.
Jennifer Desalvo MD, Joshua Gilman MD, Laura Glick MD
The melon part. To get rid of the taste of those pesky apps. And to fill your brain with some fun facts.
The Prescription We Never Write: Take a Sabbatical. Yale professor Dr. Laurie Santos explores “The life changing power of a sabbatical”in her most recent podcast episode on The Happiness Lab, in which she meets with DJ DiDonna, author of Big Time Off: The Transformative Power of Sabbaticals and How to Take One (before it takes you). They explore the meaning of a sabbatical as an intentional extended leave from your routine job for a period of time measured in months, which is already available at some companies and in other countries. This allows people to create space to actively rest, rediscover their creativity, and expand their identities beyond their job. They also offer advice to help plan your sabbatical within your workplace and day to day responsibilities to recover from burnout and the perception of judgment from others for taking time for yourself. Perhaps in healthcare, we don’t need another resilience module or wellness lecture; we may simply need permission to stop and accept that the hospital, clinic, and pager will survive in our absence.
– Jennifer DeSalvo MD
Alexander Chaitoff MD, MPH
Are ACOs being gamed?
While we’re usually focused on the evidence that can help clinicians provide high-value care, we all work within complex systems with often unknown, powerful, incentive structures. So we thought we’d take the time this month to dive into one in particular. You’ve probably heard the term “accountable care organization,” or ACO, but you’re in good company if you’re not quite sure what it is. Envisioned as a way to rein in healthcare costs without compromising quality, ACOs are groups of clinicians, practices, and hospitals that collectively take responsibility for the cost and quality of care delivered to a defined cohort of Medicare patients usually identified by where they get their primary care. If costs are kept lower and quality higher than agreed-upon benchmarks, these groups can receive some of the difference as bonus payments.
Practically, patients in ACOs remain on Traditional Medicare, and Medicare continues paying for each patient’s visits, tests, and hospitalizations. However, in the background, Medicare also compares the total annual spending and quality of care for each ACO’s patients with risk-adjusted benchmarks. To achieve their cost and quality goals, clinicians in an ACO might integrate workflows or hire staff to reduce costly care. For example, a health system might hire a nurse to make post-discharge phone calls to prevent avoidable readmissions, allowing the ACO to capture some of the savings Medicare would have otherwise had to spend on the hospitalization.
Making generalizations about whether ACOs have been successful is difficult because they come in many shapes and sizes. However, it is fair to say they have not had a consistently positive impact. 2018 data suggested ACOs may or may not generate cost savings depending on which types of practices are included in them. Many factors may explain why this incentive structure hasn’t been transformative. Maybe more important to patients, ACOs may also not lead to any improvements in quality. Unlike Health Maintenance Organizations (HMOs), which restrict patients from using costly services, ACOs are not insurance plans, and patients can see whichever providers they want (including ones not in the ACO) and use as much care as they want. Furthermore, evidence suggests many clinicians aren’t aware of their membership in an ACO and don’t know the ACO’s objective (e.g. your average clinician working for a large healthcare system).
ACOs are increasingly national
You might imagine an ACO is a local network of providers (e.g. primary care doctor, cardiologist, and nurse in the same hospital system) all working to keep a patient healthy and out of the hospital. However, third-party firms known as conveners are increasingly assembling otherwise independent practices, sometimes in different states, into a single ACO. Conveners are companies that supply the capital, data analytics, administrative infrastructure, and financial-risk management that smaller practices need to participate in Medicare’s program, typically in exchange for a portion of any shared-savings payments they receive for beating benchmarks.
Why bundle practices across different states? Because Medicare compares an ACO’s risk-adjusted patient spending against the local averages. If an ACO’s attributed patients cost less than their regional peers, the ACO can pocket a shared-savings bonus. This setup can give conveners an incentive: identify clinicians whose patient panels already cost less than their surrounding county averages, regardless of where those clinicians actually practice, and recruit them to join their ACO.
The rise of geographically distributed ACOs
Despite the original intention behind ACOs, a recent paper in Health Affairs highlights the rise of convener-assembled, geographically-distributed clinician groups. In the paper, the authors analyzed national Medicare Shared Savings Program data from 2012–21, covering 845 ACOs, and manually identified those managed by conveners. They mapped clinicians’ practice locations, classified ACOs by geographic dispersion, and compared their shared-savings payments and quality performance. The proportion of beneficiaries in convener-led ACOs grew from 11% to 23%, while the proportion in geographically dispersed convener ACOs rose from 13% to 42%. Dispersed convener ACOs earned the highest adjusted bonuses, $171 per beneficiary annually, compared with $95 for local convener ACOs, but did not demonstrate better quality care. Of course, this study was observational, so it could not determine whether these geographically dispersed ACOs lowered spending through better care or earned more mostly by strategically recruiting clinicians already caring for low-cost patients – but the latter needs to be considered.
The findings hint at a potential mismatch between the original vision of an ACO model and its evolving reality. A program designed to foster local clinical integration increasingly includes far-flung collections of clinicians who may share a financial contract without sharing patients or coordinating care. The authors argue that Medicare should consider stronger standards for clinical integration and geographic coherence for its shared savings programs. While not the primary driver of rising healthcare costs–and while it won’t change how you treat patients–this study reminds us of the incredibly complex web of perverse incentives most frontline clinicians never see.
Read the Health Affairs study HERE!
Before you go….
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The Curbsiders Digest
Issue 79
Editor in Chief: Nora Taranto MD
Banner: Kate Grant MBChB, DipGUMed
Jennifer DeSalvo, Joshua Gilman, Laura Glick, Alyssa Mancini, and Nora Taranto report no disclosures.
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Issue 79
Editor in Chief: Nora Taranto MD
Banner: Kate Grant MBChB, DipGUMed
Disclosures
Jennifer DeSalvo, Joshua Gilman, Laura Glick, Alyssa Mancini, and Nora Taranto report no disclosures.
The Curbsiders are partnering with VCU Health Continuing Education to offer continuing education credits for physicians and other healthcare professionals. Visit curbsiders.vcuhealth.org and search for this episode to claim credit.
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