Accountable Care Organizations & Other Bundled Payment, ACO's, Medical Homes ACO-Bundled Payments
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ACO/Bundled Payments

An Accountable Care Organization (ACO) is a healthcare organization characterized by a payment and care delivery model that seeks to tie provider reimbursements to quality metrics and reductions in the total cost of care for an assigned population of patients. A group of coordinated providers forms an ACO, which then provides care to a group of patients. The ACO may use a range of payment models (capitation or fee-for-service with asymmetric or symmetric shared savings, etc.). The ACO is accountable to the patients and the third-party payer for the quality, appropriateness and efficiency of the health care provided.

Bundled payment is defined as the reimbursement of health care providers on the basis of expected costs for clinically-defined episodes of care.  Bundled payments have been proposed as a strategy for reducing health care costs.

Corresponding Workgroup: ACO

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