Which term refers to coordinating care among multiple providers to improve quality and reduce costs, often by sharing savings?

• A. HRRP
• B. Medigap
• C. ACOs
• D. Part D

Answer: (C)

Accountable Care Organizations coordinate care across multiple providers to improve quality while reducing costs, with a shared-savings approach as the incentive. In an ACO, doctors, hospitals, and other clinicians work together for a defined patient population, using coordinated care plans, data sharing, and smooth care transitions to avoid duplicative tests and unnecessary procedures. When they meet agreed-upon quality and cost targets, they share the savings with the payer; this aligns incentives to both deliver high-quality care and curb unnecessary spending.

This concept fits values-based care frameworks found in programs like the Medicare Shared Savings Program. By contrast, other options focus on different mechanisms: penalties for high readmission rates, private supplemental coverage, or drug coverage, none of which center on cross-provider coordination with shared savings.