Do your due diligence before signing that ACO agreement

One thing I've noticed with regard to ACO formation is that the ACO creates its "agreements" and then presents them to the physicians for participation and execution. The physicians, who are generally afraid to "lose out" on the ACO trend, just tend to just sign them. In other words, there is a total lack of review and due diligence by the physicians. Many of these agreements fail to address things like credentialing criteria, disciplinary procedures, financial provisions, and how the financial up side or down side can affect physician compensation.  Regardless of a doctor’s view of ACOs, no document ought to be signed unless all the questions raised by them are addressed, very clearly and in writing. Dear doctor: Don't be cheap - make sure you hire competent legal counsel to review these documents before you sign them!!!

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.