FBLA Healthcare Administration Practice Test 2025 – Complete Prep Guide

Question: 1 / 440

What is the purpose of an accountable care organization (ACO)?

To provide financial incentives for hospitals

To improve quality of care and reduce costs

The purpose of an accountable care organization (ACO) is to improve the quality of care provided to patients while also reducing overall healthcare costs. ACOs are designed to encourage collaboration among healthcare providers, such as hospitals, physicians, and other healthcare professionals, to share responsibility for patient outcomes.

By focusing on coordinated care, ACOs aim to enhance the patient experience, ensuring that individuals receive appropriate preventive services as well as necessary medical treatments without unnecessary duplications of services. This collaboration enables healthcare providers to make more informed decisions, ultimately benefiting patients through improved health outcomes.

Additionally, the financial model of ACOs typically rewards providers based on the quality of care they deliver rather than the quantity of services performed. This aligns financial incentives with patient outcomes, leading to an emphasis on efficient care that can effectively lower costs while maintaining or improving quality.

The other options do not capture the comprehensive goal of ACOs. While hospitals may benefit financially from ACO participation, that is not the primary objective. Limiting access to health services is contrary to the philosophy of patient-centered care that ACOs promote. Similarly, regulating health insurance premiums is not a function of an ACO but rather a role associated with insurers and health care policy.

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To limit access to health services

To regulate health insurance premiums

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