Under ACOs, what triggers the sharing of savings?

• A. Achieving patient satisfaction targets
• B. Meeting cost benchmarks while achieving quality targets
• C. Reducing the number of providers
• D. Increasing administrative overhead

Answer: (B)

In an ACO, savings are shared only when two things happen together: costs come in below the established benchmark and quality targets are met. This pairing ensures that the organization is not just cutting expenses but doing so without compromising care quality and outcomes. When costs are below the benchmark and quality performance meets or exceeds the defined standards, a portion of the savings is distributed to the participating providers as a reward for delivering high-quality, efficient care.

If costs aren’t below the benchmark or quality targets aren’t met, savings aren’t shared, and in some models, reductions in cost without quality improvements won’t trigger any payout. Options like focusing only on patient satisfaction, or reducing the number of providers, or increasing administrative overhead do not by themselves trigger savings.