Which statement accurately describes an Accountable Care Organization (ACO)?

• A. Created by the Patient Protection and Affordable Care Act of 2010
• B. Led by a single hospital system
• C. Operates only in government clinics
• D. Disbands if quality improves

Answer: (B)

An Accountable Care Organization is a network of doctors, hospitals, and other providers that agrees to be jointly accountable for the quality and total cost of care for a defined patient population, with leadership centralized in a single organization that coordinates all participating members. This lead organization—often a hospital system or integrated delivery network—provides the governance, governance structure, and infrastructure to align incentives, track performance, and ensure coordinated care across the group. That leadership model is what makes the statement about being led by a single hospital system the best description among the options. The other statements don’t fit as accurately: ACOs aren’t defined strictly by being created by the ACA, they aren’t limited to government clinics, and they don’t automatically disband when quality improves.