Back to top

Analyst Blog

U.S. health insurer Aetna Inc. (AET - Analyst Report) has agreed to form an Accountable Care Organization (ACO) with Texas Health Resources. This is in sync with the company’s effort to improve the safety and quality of patient care and make health care more affordable.

The newly formed ACO will serve Aetna’s members who are enrolled in fully insured plans. It will also cover Aetna’s Medicare Advantage members in Dallas, Collin, Denton, Ellis, Grayson, Johnson, Kaufman, Parker, Rockwall and Tarrant counties.

Texas Health physicians will receive remuneration based on their performance in reducing patients’ health care cost while providing them best service.

An ACO is a collaboration of health care providers, who voluntarily form alliances to provide coordinated high quality care to patients. An ACO is accountable for the quality, cost, and overall care offered to members. By focusing on the needs of patients and linking payments to outcomes, the model is intended to improve the health of individuals and communities and curb rising health care costs.

ACOs or collaborative accountable care is one of the several ways by which President Obama wants to improve the quality of health of all Americans. It is viewed as a tool that would deliver seamless, high quality care for the overall population.

The Health Care Reform called for such an arrangement in order to trim unnecessary expenses associated with the absence of coordination between multiple physicians and other providers. Most Americans with multiple chronic conditions receive care from multiple physicians, and it has been observed that few patients were not taken care of to the fullest extent possible by some physicians. A large percentage of the sick population ended up being victims of medical errors and faced hospital readmissions within days of their discharge. Thus, ACOs were formed to reduce the exorbitant amounts spent due to lack of managed care.

Other health insurers like UnitedHealth Group Inc. (UNH - Analyst Report) and CIGNA Corp. (CI - Analyst Report) are also aggressively forming ACOs. Going forward, we expect such patient-centered collaborations to rapidly grow in numbers.

Aetna currently retains a Zacks Rank #3 (Hold).  Molina Healthcare, Inc. (MOH - Analyst Report), among other health care providers, carries Zacks Rank # 2 (Buy) is worth noting.  

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SUPER MICRO… SMCI 26.68 +8.94%
CENTURY ALU… CENX 26.70 +6.89%
CANADIAN SO… CSIQ 37.50 +5.81%
GTT COMMUNI… GTT 12.89 +5.31%
BANCO DO BR… BDORY 16.35 +5.28%