ABSTRACT
In considering ACO formation, prospective participants must devise a financial plan that will provide adequate funding for the initial capital investment related to the organization’s ongoing working capital and operational costs. Until an ACO is self-sustaining, capital from the initial investments will finance the new organization, which will require significant investment in information technology and administrative systems, an expansion of human resources, and the ability to cover the risk of financial loss as well as capital needs for other ACO purposes. An organization seeking to operate an ACO should investigate whether their ACO has adequate capitalization to execute their business plan.1
