Following today’s Supreme Court ruling upholding the Patient Protection and Affordable Care Act (PPACA), Holly Meidl, U.S. HealthCare Practice Leader for Marsh Inc., had the following reaction in regards to the impact on hospitals and physician groups:

“Following today’s Supreme Court ruling, hospital organizations will likely move quickly to form accountable care organizations (ACOs) and similar networks.

“In anticipation of the PPACA taking effect, a number of hospitals and providers have banded together to form ACOs and other networks through which they can offer a range of coordinated services to a population of patients. Those that have delayed their pursuit of these networks while awaiting the Supreme Court’s ruling will now move quickly to adapt to the law.

“Even if Congress ultimately repeals all or part of the PPACA, the industry has already gone too far down this road to go back. Government payment structures and cost pressures will continue to force hospitals and providers to pursue ACOs and other such networks.

“Hospitals and physician groups must remain vigilant about managing the expanding risks and exposures associated with operating ACOs. These risks include increased managed care errors and omissions exposures, directors and officers liability exposures, and cyber/privacy risks.”

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