Accountable Care Organizations

AAA

DEFINITION of 'Accountable Care Organizations'

Healthcare providers that take a group approach to coordinating the care that patients receive. Accountable care organizations work to both improve care and save money in overall expenses by providing disease management services and other chronic care management options, while reducing duplicated care measures that often occur when a patient has multiple physicians and specialists.

BREAKING DOWN 'Accountable Care Organizations'

Guidelines for the establishment of accountable care organizations were outlined in the Patient Protection and Affordable Care Act. They help to facilitate an environment of cooperation between insurers, providers and medical treatment facilities, creating a network to assign patients to, which is similar to a health maintenance organization's network, but without the requirement that the patient stay within a certain network.

RELATED TERMS
  1. Universal Health Care Coverage

    An organized healthcare system that provides healthcare benefits ...
  2. Affordable Care Act

    A federal statute signed into law in March 2010 as a part of ...
  3. Health Maintenance Organization ...

    An organization that provides health coverage with providers ...
  4. Healthcare Sector

    A category of stocks relating to medical and healthcare goods ...
  5. Net Collections

    A term used in medical accounting to describe the amount of money ...
  6. Mobile Health

    Mobile health is the practice of medicine using new mobile technologies.
Related Articles
  1. Mutual Funds & ETFs

    ETF Analysis: Direxion Daily Healthcare Bull 3X

    Learn about the Direxion Daily Healthcare Bull. This is a leveraged ETF that tracks the health care sector, which is a leader in this bull market.
  2. Stock Analysis

    5 Reasons Thoratec Corp. Keeps Impressing Investors

    Learn about Thoratec Corporation and its position in its industry. Understand five key factors why the company has impressed investors.
  3. Stock Analysis

    The 2 Healthcare Stocks You'll Wish You Bought in 2015

    Learn about the health care industry and the companies involved. Understand why the two best performing health care stocks in 2015 did so well.
  4. Stock Analysis

    The 5 Worst Health Care Stocks of 2015

    Learn about the health care industry and how it has performed in 2015. Understand why the worst-performing health care stocks of 2015 have underperformed.
  5. Entrepreneurship

    How Does ClassPass Work and Make Money?

    Find out how ClassPass makes money, how the company aims to help both businesses and consumers, and why it has been so successful.
  6. Stock Analysis

    Healthcare M&A and Prescription Drug Prices

    Learn how mergers among health care insurance companies and drug companies could lead to increased premiums for consumers and lower drug costs.
  7. Retirement

    What Are the Risks to Your Retirement Security?

    One of the biggest risks to your retirement security is something you may take for granted: your health, and more specifically, health-care costs.
  8. Retirement

    Secrets to Finding the Right Nursing Home

    The wrong choice could mean inadequate – or even deadly – care.
  9. Investing

    Things Nursing Homes Are Not Allowed to Do

    What rights do a home's residents have? The same ones they they had before they entered the facility.
  10. Technical Indicators

    Key Financial Ratios to Analyze The Healthcare Industry

    Examine the health care sector and learn about significant financial ratios used by investors and analysts to evaluate health care companies.
RELATED FAQS
  1. What role does the agency problem play in the modern Health Care industry?

    Agency problems vary from health care system to health care system, and not all economists agree on the degree and desirability ... Read Full Answer >>
  2. What is the average annual dividend yield of companies in the chemicals sector?

    Some of the most prominent examples of operations management in health care include controlling costs, enhancing the level ... Read Full Answer >>
  3. How does being overweight affect my healthcare costs?

    Obesity and being overweight result in higher costs for individuals and for the broader health-care sector. In the United ... Read Full Answer >>
  4. How does the Affordable Care Act affect moral hazard in the health insurance industry?

    To see how the Patient Protection and Affordable Care Act, or "Obamacare," affects moral hazard in the health insurance industry, ... Read Full Answer >>
  5. Why should an investor include an allocation to the drugs sector in their portfolio?

    Both conservative and high-risk investors can find things to like in the health care sector, particularly in the drugs subsector. ... Read Full Answer >>
  6. What does it mean when a drug is in clinical trials and how long does it take to ...

    Clinical trials are research studies designed to determine the safety and effectiveness of new drugs in humans. All products ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Depreciation

    1. A method of allocating the cost of a tangible asset over its useful life. Businesses depreciate long-term assets for both ...
  2. Recession

    A significant decline in activity across the economy, lasting longer than a few months. It is visible in industrial production, ...
  3. Bubble Theory

    A school of thought that believes that the prices of assets can temporarily rise far above their true values and that these ...
  4. Stock Market Crash

    A rapid and often unanticipated drop in stock prices. A stock market crash can be the result of major catastrophic events, ...
  5. Financial Crisis

    A situation in which the value of financial institutions or assets drops rapidly. A financial crisis is often associated ...
  6. Election Period

    The period of time during which an investor who owns an extendable or retractable bond must indicate to the issuer whether ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!