Certified Revenue Cycle Representative (CRCR) Practice Exam

In the context of healthcare, what does the acronym ACO stand for?

1. Alternative Care Organization

2. Accountable Care Organization

3. Advanced Care Organization

4. Affiliated Care Organization

The correct answer is: Accountable Care Organization

The acronym ACO stands for Accountable Care Organization. This term is significant in healthcare as it refers to a group of healthcare providers, including hospitals and physicians, that come together to provide coordinated high-quality care to their patients. The primary goal of an ACO is to ensure that patients receive the appropriate care at the right time, preventing unnecessary spending and avoiding duplication of services. The structure of an ACO emphasizes accountability, meaning that these organizations are responsible for the overall quality of care and the costs associated with the patient population they serve. ACOs aim to improve patient outcomes while managing healthcare costs effectively. By focusing on value rather than volume, ACOs contribute to a more sustainable healthcare system. The other options present different interpretations of the acronym, but they do not align with the industry's established terminology or practices. Accountable Care Organizations have become a prominent model for achieving better healthcare outcomes through coordinated care.