What component is essential for ACOs to maintain financial viability?

The essential component for Accountable Care Organizations (ACOs) to maintain financial viability is cost management and care coordination. ACOs are designed to improve healthcare quality while reducing costs by emphasizing collaboration among care providers. Effective cost management ensures that resources are used efficiently, reducing unnecessary expenditures, and ultimately enhancing the overall financial health of the organization.

Care coordination is critical in delivering streamlined healthcare services, enabling better communication among healthcare providers, and ensuring that patients receive the appropriate care at the right time. This approach not only improves patient outcomes but also helps to prevent costly hospital readmissions and complications. Therefore, the integration of cost management and care coordination is vital for ACOs to succeed financially while fulfilling their mission of providing high-quality care.

The other options—such as excessive specialization, isolation from community health services, and a focus on volume rather than quality care—do not support the goals of ACOs. Specialization without coordination can lead to fragmented care, while isolation undermines community health connections essential for serving populations effectively. A volume-driven approach contrasts with the value-based care model that ACOs strive to maintain, where the focus is placed on the quality of care rather than the quantity. Thus, promoting cost management and care coordination is fundamental for ACO