What is the primary characteristic of an Accountable Care Organization (ACO)?

Prepare for the HFMA Business of Health Care Exam. Study with flashcards and multiple-choice questions, each with hints and explanations. Ace your exam with confidence!

The primary characteristic of an Accountable Care Organization (ACO) is indeed a network of healthcare providers coordinating patient care. ACOs are designed to improve the quality of care while reducing costs. They achieve this by fostering collaboration among various healthcare providers, which allows them to share information, align treatment plans, and ensure that patients receive comprehensive, coordinated care throughout their healthcare journey.

This structure encourages a team-based approach, where primary care physicians, specialists, hospitals, and other providers work together to manage patient care effectively. By prioritizing communication and collaboration, ACOs aim to reduce unnecessary services and interventions, thereby leading to better health outcomes and greater patient satisfaction.

In contrast, the other options do not capture the essence of what defines an ACO. For example, while a single hospital managing all aspects of care might imply a centralized approach, it doesn't emphasize the collaborative nature of multiple providers working together, which is central to ACOs. A program offering free healthcare services to patients does not align with the ACO model, which typically involves shared savings and incentives based on performance metrics rather than free services. Finally, a healthcare provider charging only for services rendered does not reflect the accountability and coordinated care focus characteristic of ACOs, as it suggests a more

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