Which plan coordinates care among doctors and hospitals to manage cost and outcomes?

• A. PPO
• B. HMO
• C. Accountable Care Organization
• D. EPO

Answer: (C)

The concept being tested is coordinated, value-based care where providers are collectively responsible for both cost and quality outcomes. An Accountable Care Organization is a network of doctors and hospitals that work together to manage the full spectrum of care for a defined patient population. They share information, align incentives, and are held to performance standards for quality and cost. If the group delivers high-quality care while keeping costs under a benchmark, it can share in savings; if costs rise, they may bear some financial risk. This structure focuses on reducing duplication, improving care coordination, and improving outcomes across multiple providers.

PPOs allow flexible provider choice and don’t require coordinated care across a network; HMOs use gatekeeping through primary care physicians but aren’t centered on shared financial incentives across multiple hospitals and specialists; EPOs are network-restricted like HMOs but without out-of-network coverage. The defining feature here is the coordinated, accountable approach across doctors and hospitals to control costs and improve outcomes, which is characteristic of an Accountable Care Organization.