Accountable Care Organizations (ACOs) are designed to?

• A. To promote independent practice by physicians without coordination.
• B. To facilitate coordination among providers and hospitals to improve quality of care and reduce costs for Medicare fee-for-service beneficiaries.
• C. To replace physicians with nurse-led clinics.
• D. To charge higher administrative fees to hospitals.

Answer: (B)

ACOs are designed to align incentives across clinicians and hospitals to coordinate care, improve quality, and reduce costs for Medicare fee-for-service beneficiaries. They are groups of providers who take collective responsibility for the care of a defined patient population, using care coordination, data sharing, and population-health strategies to prevent unnecessary services. If they meet quality and cost benchmarks, they share in savings with Medicare; if they don’t, they may bear risk. This emphasis on coordinated, value-based care distinguishes ACOs from models that promote fragmented, uncoordinated practice, do not involve replacing physicians with nurse-led clinics, and do not aim to simply raise administrative fees.