What defines an Accountable Care Organization (ACO)?

An Accountable Care Organization (ACO) is defined as a system of providers that collaborates to care for a patient population. This collaborative approach is central to the concept of ACOs, which aim to improve patient outcomes while controlling costs. By working together, providers within an ACO can coordinate care, share information, and implement practices that promote efficiency and better patient engagement. This teamwork is vital for managing the overall health of the population they serve, which includes improving preventive care, reducing hospital readmissions, and enhancing the quality of care delivery.

The focus of ACOs is to ensure that patients receive appropriate and timely healthcare services, avoiding unnecessary procedures and improving the management of chronic diseases through collaborative efforts among various providers. This model emphasizes accountability for both the quality of care and the costs associated with that care, representing a significant shift from traditional fee-for-service models.