Accountable Care Organizations

An Accountable Care Organization (ACO) is an agreement among three entities: payers, hospitals, and physician organizations. Providers are jointly responsible for their patients' health, and payers give them financial incentives to save money by coordinating care.

The number of ACOs is growing more rapidly than our knowledge about how best to structure them. Pilots, several of which RAND is evaluating, will begin to build this knowledge base, but it's too soon for results.

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