ACO Issue: Different Incentives for Docs and Hospitals

So if you are a hospital, admissions mean revenue. But if you are part of an ACO, your global payment discourages unnecessary hospital admissions. From a WSJ article on ACOs:

Another concern: "Hospitals and doctors don't work together well," says Mr. Goldsmith. Hospitals' incentive is to maximize revenue through admissions, Mr. Goldsmith says, while doctors aim to keep their patients at home or in outpatient facilities.

This is really going to be interesting.