Which statement describes FFS payment plus population-based payments plus adjustments for quality metrics?

• A. Reimbursements include quality metrics that vary widely
• B. Pay for performance
• C. Accountable care organizations, providers choose to take on risk
• D. Totally committed to taking on risk

Answer: (C)

This describes Accountable Care Organizations. In an ACO, providers receive a mix of payments: traditional fee-for-service for services rendered, plus population-based payments (such as capitation or per-member-per-month arrangements) to cover a defined group of patients, with adjustments or bonuses tied to quality metrics. This structure creates incentives to coordinate care, control costs, and improve quality, because performance on quality measures can affect the overall payments or shared savings.

Why this fits best: the scenario combines FFS payments, population-based payments, and quality adjustments—all central features of ACO contracts where providers voluntarily take on some financial risk to improve care for a defined population. The other options describe related concepts but don’t capture the full mixed-payment, risk-sharing model as precisely. Pay for performance emphasizes quality bonuses within FFS alone; the vague statement about reimbursements is not specific; and “totally committed to taking on risk” implies full risk, which isn’t necessarily how ACOs are structured.