What is the function of Accountable Care Organizations (ACOs)?

The function of Accountable Care Organizations (ACOs) is centered around collaboration for coordinated care, which plays a critical role in improving patient outcomes and controlling healthcare costs. ACOs are designed to bring together various healthcare providers—such as hospitals, physicians, and specialists—to work collaboratively within a network. This teamwork allows for a more seamless experience for patients, ensuring that their care is well-coordinated and that there is effective communication among healthcare providers.

By emphasizing coordinated care, ACOs aim to keep patients healthy and reduce unnecessary hospital admissions or duplicated services, ultimately leading to better outcomes. This approach not only enhances the quality of care provided but also aids in controlling costs, as a focus on prevention and management of chronic conditions can lead to fewer high-cost interventions.

The alignment of financial incentives within ACOs encourages providers to prioritize the health of populations over individual patient encounters, which reinforces this model's effectiveness in the healthcare ecosystem.