Western Governors University (WGU) HCM3510 C432 Healthcare Management & Strategy Practice Test

An Accountable Care Organization (ACO) is best described as a group coordinating patient care to reduce costs and improve quality. ACOs are formed by networks of physicians, hospitals, and other healthcare providers who work together to provide high-quality care to patients while being held accountable for the costs and outcomes of that care.

The primary goal of an ACO is to enhance the coordination of services, which not only helps to ensure that patients receive the right care at the right time but also reduces unnecessary spending. By focusing on preventative care and ensuring that all parts of a patient's healthcare journey are aligned, ACOs aim to improve overall health outcomes. They often utilize shared savings models, where they can benefit financially from reducing healthcare costs while maintaining or improving the quality of care delivered to patients.

This collective approach contrasts with organizations focused solely on profit generation, which may prioritize financial gains over patient care, and with specialized providers or regulatory bodies that do not encompass the collaborative, coordinated care model that defines ACOs.