What does ACO stand for?

• A. A type of health plan with large network
• B. A plan with no coordination
• C. A care model focused on coordination and outcomes, doctors and hospitals work together to manage care and cost
• D. A government oversight program

Answer: (C)

An ACO stands for Accountable Care Organization. It’s a group of doctors, hospitals, and other health professionals who come together to provide coordinated care to a defined set of patients, with the aim of improving quality and controlling costs. The description that emphasizes coordination, focus on outcomes, and shared responsibility for managing care and cost matches what an ACO is: providers work together and are accountable for the overall care experience and spending. This goes beyond simply having a large network or a government regulatory role, which don’t capture the collaborative, outcome-driven, cost-aware approach of an ACO.