What is an Accountable Care Organization (ACO)?

Under the Centers for Medicare and Medicaid Services (CMS), a Medicare Shared Savings Program ACO refers to a group of Medicare providers and suppliers (e.g., hospitals, physicians, and others involved in patient care) that will work together to coordinate care for the Medicare Fee-For-Service patients they serve. The goal of an ACO is to deliver seamless, high-quality care for Medicare beneficiaries, instead of the fragmented care that often results from a Fee-For-Service payment system. A Medicare Shared Savings Program ACO is a patient-centered organization where the patient and providers are true partners in care decisions.

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