The Affordable Care Act, a part of the health care reformlegislation that became law in early 2010, is designed to improvethe health care delivery system for Medicare patients throughincentives to enhance quality, improve beneficiary outcomes, andincrease the value of care.
One of the key delivery reforms is the encouragement of thecreation of accountable care organizations. [See related: HHSissues ACO guidance]
As originally set up, ACOs are designed to facilitatecoordination and cooperation among providers to improve the qualityof care for Medicare beneficiaries and reduce unnecessary costs. AnACO is an organization of health care providers that agrees to beaccountable for the quality, cost, and overall care of Medicarebeneficiaries who are enrolled in the traditional fee-for-serviceprogram.
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