An ACO is primarily formed to:

An Accountable Care Organization (ACO) is primarily designed to enhance the quality of patient care while simultaneously sharing financial accountability among various healthcare providers. The fundamental goal of an ACO is to improve care coordination, which leads to more efficient use of healthcare resources and better health outcomes for patients.

The advantage of this approach lies in the collaborative nature of the ACO, where different healthcare entities—such as hospitals, primary care physicians, and specialists—work together to manage the health of a patient population. By aligning incentives to focus on quality of care and prevention, ACOs can reduce unnecessary expenditures and avoid duplicative tests or treatments. This model promotes accountability as providers share in both the savings and risks associated with patient care, ultimately striving to meet specific quality benchmarks.

This structure contrasts sharply with other potential approaches in healthcare delivery that might prioritize billing and efficiency without a focus on patient outcomes, or attempt to limit access to certain types of care, which could adversely affect patient health. By emphasizing coordinated care and shared responsibility, ACOs represent a shift towards value-based care, aiming to improve both health outcomes and reduce overall costs in the healthcare system.