The New York Times recently reported that it found that the amount paid by a patient’s insurance plan for a routine colonoscopy varies significantly: between $740 and $8,500, depending upon the location, the particular doctor and where the procedure is performed. The Times found that colonoscopies cost the most when performed in hospitals and the least when performed in a doctor’s office. Another significant variable for price is who administers the sedative, if one is required. Similar variations in price exist for other procedures such as M.R.I. scans and common orthopedic and cardiology procedures such as artificial hips and coronary angiograms with stent replacement.

The Patient Protection and Affordable Care Act (“ACA”) is designed to reduce (or at least control growth) in medical costs and improve quality of care. One method to achieve these goals is with an Accountable Care Organization (“ACO”). An ACO is a group of healthcare providers, usually a combination of a hospital and physicians, who contractually agree to take on the shared responsibility for a defined population of patients....

Originally published in AZMedicine - Summer 2013.