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What defines an 'accountable care organization' (ACO)?

Providers who compete for patient referrals

A group coordinating care to enhance patient outcomes

An accountable care organization (ACO) is fundamentally defined by a group of healthcare providers who work collaboratively to coordinate care, with a focus on enhancing patient outcomes. This coordinated approach aims to improve the quality of care while reducing costs, emphasizing the value of integrated healthcare delivery. In ACOs, healthcare providers such as hospitals, physicians, and other clinicians come together to take collective responsibility for the care of a specific population of patients.

By fostering collaboration, ACOs seek to improve patient experiences by ensuring that care is seamless, timely, and effective. They often employ data-sharing and communication strategies to facilitate this coordinated care, allowing different providers to work together to meet the health needs of their patients, which is critical in managing chronic conditions and preventing hospital readmissions.

The other options do not capture the essence of what ACOs represent. Competing for patient referrals does not align with the collaborative nature of ACOs, organizations focused solely on costs miss the critical aspect of quality improvement, and a sole practitioner does not reflect the teamwork and inter-provider cooperation that defines an ACO.

Organizations focused solely on healthcare costs

A sole practitioner providing specialized care

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