What is a primary characteristic of an Accountable Care Organization (ACO)?

An Accountable Care Organization (ACO) is fundamentally characterized by its responsibility for the overall care of a defined population, particularly Medicare beneficiaries. This model emphasizes coordinated care across various service settings to improve healthcare quality while reducing costs. ACOs encourage providers to work collaboratively to manage patient care, focusing not just on treating illnesses but also on preventing them, thereby improving patient outcomes and satisfaction.

In this context, the ACO structure promotes accountable care by aligning incentives for providers to deliver high-quality service and efficiently manage resources. This means that providers within an ACO share in both the savings generated from improved care and the responsibility for any increased costs, creating a vested interest in the health of their patient population. Thus, option B accurately describes the primary characteristic of ACOs.