Aco sept 21st

Driving ACO Performance: and

ACO

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Why ACOs are the Major Health Care Consulting/Sales Opportunity of the Decade

Health Care (and its one-sixth of the U.S. GDP) are undergoing the biggest shift in half a century. Accountable Care Organizations (“ACO”), the Federally-incented restructure for comprehensive clinical provider groups, will be the leading edge of these changes:

• Efficiency and CQI-style quality improvement will be critical for clinical health care businesses to survive the ongoing changes triggered by the Affordable Care Act.

• The ACO program is an important tool for early adopters drive their efforts, and gives ACO sponsors access to Federal preferences.

• Provider compensation is moving rapidly toward capitation and case rates, which require smarter, more comprehensive clinical organizations (like ACOs) to meet spread of risk pressures.

• The Federal government is pressing for evidence-based medicine, which will require ACO-style horizontal integration and consolidation of practice. Evidence-based medicine will drive efficiency efforts throughout the industry.

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How Do CFOs Get Performance from ACOs?

ACOs have to deliver performance as businesses. This means they have to manage several critical issues:

RETURN ON CAPITAL• Maximize business throughput• Drive the Winning Profit Centers• Drive Yield on Funds/Return on Capital

RISK LIMITS• Minimize Volatility• Cull Losing Operations• Hedge Your Bets

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How Aon and PVM Can Help Your ACO

Operating a new class of business such as an ACO requires special knowledge and skills. Two firms offer solid resources in driving performance for your ACO:

Aon plc is the leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. Our key advantage is our broad view of two of the most important issues in our economy today: risk and people. With an employee base of 65,000 people working in more than 120 countries, we can anticipate how changes in one sector impact another.

PVM Partners LLC (“PVM”) is a Los Angeles-based firm creating improved financial and operating performance for businesses and organizations who want strong, measureable results quickly. PVM experts have improved performance for managed care plans, PBMs, IPAs, clinic chains and hospitals. Our principals serve as subject matter experts for the Institute of Industrial Engineers and the California Society of CPAs, and received a Letter of Commendation from the Clinton White House for their analytic work on health care issues.

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Specific Targets

. Stop Loss coverage . Activity-based costing/ return on capital improvement

. Benefits Captives/Stop Loss . Scenarios/modeling/”Big Data”

. General business risk coverage . Lean/Agile/CQI (operations)

. Construction risk for clinical facilities . Marketing/contracting efficiencies

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CONTACTSAon:Jessica Christensen 213.630.2068

PVM Partners:Frederick W. Croft 818.248.6277