It has been revealed through a new report that in order to cut healthcare costs as well as improve services, University of Iowa Hospitals and Clinics (UIHC) as well as Cedar Rapids-based Mercy Medical Center have all made a common organization.

As per the findings, the new accountable care organization has been formed with a belief that patients would be able to get coordinated care for themselves. And improved results would be realized in team-work rather than care by individual doctors.

"The Medicare beneficiaries will still be able to see their physicians, but if they need more advanced or specialized care, that process will be smoother for them', says Tom Moore, a spokesperson for UIHC. The organization is one of the 89 new health care groups aimed at enhancing Medicare service.

It is being said that the new move would not only benefit patients, but would also help UIHC and Mercy Medical Center to receive savings up to $940 million because of grouped care. The plan has been seeing success with the help of the 2010 Affordable Care Act.

Also, they would probably be able to take advantages from the federal Medicare Shared Savings Program. In addition, the report says, better quality care may also be received at patients' end.