What is an ACO?


Focusing on outcomes rather than services, an Accountable Care Organization (ACO) is a group of medical providers who work together to coordinate care for a particular patient population. ACO’s are a value-based model. They aim to provide patients with a higher value of care with an overall lower cost.


There are a multitude of ACO’s across the country that share similar goals for members. Some of those goals include better patient outcomes through coordinated care; lower healthcare costs; and improved efficiencies between healthcare providers. ACO’s help healthcare providers serve Medicare beneficiaries and populations in need.


ACO’s are designed to benefit patients, physicians, and the government by providing quality healthcare at a lower cost. Let’s take, for example, a physician’s office or hospital. When they join an ACO they are choosing to participate in a government or commercial agreement for collaborative healthcare. Members of the ACO coordinate patient care, incorporate best practices, and share data in order to reduce costs for patients and improve services. Any earned savings by the ACO are split among its members.


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