What is a key feature of Accountable Care Organizations?

• A. MCOs rely on fee-for-service payments.
• B. ACOs emphasize narrow networks with no risk sharing.
• C. ACOs emphasize population-based funding with no patient choice.
• D. Shared savings and shared risk with broad patient choice.

Answer: (D)

Accountable Care Organizations are designed to improve quality while lowering costs for a defined patient population, with providers taking collective responsibility for both cost and care quality. The key feature is shared savings and shared risk: if the ACO meets cost and quality targets, providers share the savings; if costs rise or quality targets aren’t met, providers may share in the losses. This framework works alongside broad patient choice, meaning patients can see any qualified provider rather than being limited to a narrow network. Traditional fee-for-service payments don’t involve this shared-risk distribution, and narrowed networks or funding models that eliminate patient choice don’t fit how ACOs operate.