What is the primary goal of an Accountable Care Organization (ACO)?

• A. To maximize hospital profits through increased fee-for-service billing
• B. To consolidate care under a single payer with minimal data sharing
• C. To coordinate care for a defined patient population with the aim of reducing costs but not sharing savings
• D. To coordinate care for a defined patient population, improve quality, and reduce costs to share savings with payers

Answer: (D)

The primary goal is to coordinate care for a defined patient population, improve quality, and reduce costs, with savings shared with payers. This captures how ACOs operate: a group of providers and payers work together to deliver higher-value care, using performance measures and shared savings if cost and quality targets are met.

The idea of maximizing hospital profits through increased fee-for-service billing doesn’t fit, because ACOs focus on value over volume rather than boosting billing. Consolidating care under a single payer with minimal data sharing goes against the collaborative, data-driven approach that ACOs rely on. Coordinating care to reduce costs but not sharing savings misses the financial incentive that motivates participation in an ACO.