What is a significant risk for an ACO if it does not generate enough income?

Prepare for the HFMA Business of Health Care Test. Study with flashcards and multiple choice questions, each question offers hints and explanations to boost your confidence. Ace your exam!

A significant risk for an Accountable Care Organization (ACO) that does not generate enough income is financial losses. ACOs operate on a model that emphasizes shared savings through effective management of healthcare resources and populations. If the revenue generated is insufficient to cover expenses, such as operational costs, care coordination initiatives, and patient services, the ACO may experience financial strain. This could hinder their ability to provide quality care, invest in necessary resources, or sustain operations in the long term.

The other options, such as higher patient satisfaction, improved care coordination, and enhanced community outreach, represent positive outcomes that an ACO may strive to achieve, but they do not directly relate to the immediate financial viability of the organization. In fact, financial losses could compromise the ACO's ability to maintain these positive aspects of care delivery. Understanding the financial underpinnings is crucial for an ACO's sustainability and success in achieving its healthcare goals.

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