ABSTRACT
The physician-hospital organization (PHO) is revisited here because it is a ubiquitous organization that is installed in many health care enterprises. Given the nature of bureaucracies, it is something that may not go away, even if it is dysfunctional or unable to achieve the goals that are necessary in a new marketplace of consumer choice and competitive insurance exchanges. Can the PHO transform itself into a functioning accountable care organization (ACO)? Probably not, unless it is structured in a fashion that will be able to effectively plan and react. This takes an organization that is focused on the needs of the marketplace and not the needs of its constituencies.
