Which model is designed to share savings with providers when quality and cost benchmarks are met?

• A. BPCI
• B. ACO
• C. HRRP
• D. CJR

Answer: (B)

Accountable Care Organizations (ACOs) are built around shared savings incentives. They coordinate care for a defined population and aim to keep overall costs under a benchmark while achieving agreed-upon quality standards. When the group meets those cost benchmarks and reaches or exceeds quality targets, they receive a portion of the savings to distribute among the participating providers. This explicit link between meeting cost targets, achieving quality, and sharing the resulting savings is the hallmark of ACO arrangements.

Other models emphasize penalties or fixed episode payments rather than a broad, performance-based sharing of savings across a provider network, so the concept described aligns most directly with the ACO model.