Paul Hsieh points out at Town Hall, that ObamaCare is essentially a Soviet-style central planning scheme based on the notion that a group of Beltway apparatchiks can outsmart the market:

Accountable Care Organizations (ACOs) represent the latest attempt to control escalating health costs by government central planning. Through financial carrots and sticks, doctors and hospitals would be “encouraged� to merge into large provider groups to deliver medical care according to government “comparative effectiveness� guidelines.

This kind of nonsense has been tried in countless nations in Europe and elsewhere, and the result is always the same. Reduced access, lower quality and unhappy patients. Even worse, it doesn’t even control costs.

The President has often cited the Mayo Clinic as the kind of health care organization we should emulate. Well, guess what? Mayo has rejected the ACO concept for all the obvious reasons:

The Mayo Clinic said it could not abide by the Obama administration’s proposed ACO regulations. The American Medical Group Association (AMGA), the umbrella organization representing large medical groups including the prestigious Mayo Clinic and Cleveland Clinic, recently issued a statement characterizing the ACO guidelines as ‘overly prescriptive [and] operationally burdensome.’

Central planning doesn’t work folks. That’s why the USSR is gone and we’re still here. To read the rest of Dr. Hsieh’s column go here.

Comments 2

  1. Paul Hsieh wrote:

    Thanks for the link!

    Posted 22 Jun 2011 at 7:20 pm
  2. MonkeyIncognito wrote:

    The ACO concepth has been working for years, so I guess it was time for the government to come in and screw it up. Our ACO is rated by third party organizations as #1 in financial efficiency, quality outcomes and member satisfaction by large margins.

    Also, I don’t think that many of these articles go into depth on the many types of ACOs and the merits of each. They almost exclusively focus on a small subset of ACOs, hospital-based Medicare programs, and paint with a broad brush.

    Paul, I appreciate you writing but please note that this DC nonsense is specific to Medicare ACOs and the problems are with the ones that are hospital based.

    Posted 24 Jun 2011 at 9:38 am

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