Define a Medicare Shared Savings Program Accountable Care Organization (ACO).

• A. A group of providers that coordinates care for a patient population and can share in savings if quality and cost targets are met.
• B. A government agency that sets hospital reimbursement.
• C. A patient advocacy organization seeking lower prices.
• D. A hospital-owned insurer for self-funded plans.

Answer: (A)

An ACO in the Medicare Shared Savings Program is a group of providers—physicians, hospitals, and other clinicians—who come together to coordinate care for a defined patient population. The goal is to improve quality and patient experience while lowering total costs. When the ACO meets predefined quality and cost targets, it shares in the savings generated for Medicare. This setup is provider-led and focused on care coordination; it is not a government agency, not a patient advocacy group, and not an insurer owned by a hospital.