Which term best describes a coordinated effort to improve health outcomes while controlling costs across a population?

Which term best describes a coordinated effort to improve health outcomes while controlling costs across a population?

• A. Pharmacy Benefit Manager
• B. Formulary
• C. P&T Committee
• D. Accountable Care Organization

Answer: (D)

This describes a model that aligns clinicians and hospitals around shared accountability for the health and costs of a defined population. An Accountable Care Organization brings together providers to coordinate care, manage population health, and share in savings or assume risk under value-based contracts. The goal is to improve quality and patient experience while reducing unnecessary utilization and overall costs, through coordinated care across primary, specialist, inpatient, and post-acute settings. The other options relate to drug benefits or formulary governance—Pharmacy Benefit Manager handles benefits and pricing, a formulary is the list of approved medications, and a P&T Committee sets policies for drug use and formulary decisions. While these influence costs and prescribing, they do not by themselves coordinate care for a population or assume accountability for outcomes and total cost of care.

This describes a model that aligns clinicians and hospitals around shared accountability for the health and costs of a defined population. An Accountable Care Organization brings together providers to coordinate care, manage population health, and share in savings or assume risk under value-based contracts. The goal is to improve quality and patient experience while reducing unnecessary utilization and overall costs, through coordinated care across primary, specialist, inpatient, and post-acute settings. The other options relate to drug benefits or formulary governance—Pharmacy Benefit Manager handles benefits and pricing, a formulary is the list of approved medications, and a P&T Committee sets policies for drug use and formulary decisions. While these influence costs and prescribing, they do not by themselves coordinate care for a population or assume accountability for outcomes and total cost of care.