Accountable Care Organizations (ACOs), outlined in the Affordable Care Act, are one of the ways the Medicare program encourages and incentivizes what has become known as "coordinated care." Coordinated care, in its various forms and labels, is essentially a group of doctors, hospitals, and other healthcare providers (such as long-term care facilities, for example) that voluntarily creates some form of a risk-sharing agreement. The details depend on the local needs of the groups and how they negotiate their specific contract. The basic risks that they share, however, involve managing the health of their shared patient population. If the group succeeds, by keeping patients healthy through efficient use of the healthcare system (i.e. avoiding the duplication of tests and procedures), it will share in the savings they achieve for the Medicare program as a result of their effective medical care.
Accountable Care Organizations (ACO) | Center for Medicare & Medicaid Services.
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