Medicare Shared Savings Accountable Care Organizations are an example of what type of contracting?

Medicare Shared Savings Accountable Care Organizations (ACOs) are designed to promote the coordination and quality of care among health care providers. This model is fundamentally a risk-based contract because it aligns the incentives of the providers with the cost of care management and patient outcomes. Under this framework, participating ACOs agree to take on some level of financial risk by being accountable for the total cost of care for their assigned patient population.

If the ACO successfully reduces costs while maintaining or improving the quality of care, it can share in the savings generated. This structure creates a financial incentive for ACOs to focus on preventive care, reducing unnecessary services, and improving overall patient health outcomes rather than simply providing a higher volume of services, as seen in traditional fee-for-service models.

The other contracting types, such as fee-for-service contracting, do not incorporate a shared financial risk or focus on outcomes. Value-based purchasing is a broader strategy that can include elements of risk but is typically more centered around quality metrics rather than strictly the cost-sharing aspect inherent in risk-based contracts. Per capita contracts refer to predetermined payments per patient, which can exist in various formats, but they do not specifically capture the collaborative risk-sharing element that characterizes ACOs. Therefore,