Accountable Care Organizations (ACOs) are:

• A. A group of patients sharing medical records.
• B. A network of hospitals only.
• C. An independent billing entity for providers.
• D. Groups of providers who work together to improve quality and lower costs of care.

Answer: (D)

ACOs are groups of providers who work together to improve quality and lower costs of care. They coordinate care for a defined patient population and share responsibility for outcomes, often earning shared savings when quality targets and cost benchmarks are met. This collaboration includes physicians, hospitals, and other clinicians, not just hospitals, and focuses on delivering coordinated, efficient care across settings. The other descriptions miss the core idea: simply sharing medical records is about data access, not accountability for care results; limiting to hospitals excludes many essential providers; and a billing entity describes financing rather than the collaborative delivery and accountability that define ACOs.