Which description best captures the essence of an Accountable Care Organization (ACO) as a payment and care model?

• A. A CO maximizes fee-for-service revenue without data sharing.
• B. An ACO consists of a network that coordinates care for a defined patient population, with a goal to improve quality and reduce costs and share savings with payers.
• C. An ACO is a government agency that sets healthcare standards.
• D. An ACO pays clinicians a fixed salary with no performance incentives.

Answer: (B)

ACOs bring together providers to manage the care of a defined patient group, tying reimbursement to both quality and cost. They coordinate care across the full spectrum—primary care, specialists, hospitals, and other services—with the goal of improving outcomes while lowering overall spending. When cost and quality benchmarks are met, the organization shares some of the savings with payers, aligning financial incentives with better patient care. This description matches the idea of a network that coordinates care for a defined population, aims to improve quality and reduce costs, and distributes savings to payers.

Other options conflict with this approach: maximizing fee-for-service revenue focuses on volume rather than value and typically lacks collaboration and data sharing; a government agency setting standards is not an ACO; a fixed salary with no performance incentives misses the accountability for outcomes and shared savings that define an ACO.