What term describes the arrangement where Accountable Care Organizations share gains and losses among providers?

The term that accurately describes the arrangement where Accountable Care Organizations (ACOs) share gains and losses among providers is gain sharing. This concept involves a collaborative approach where healthcare providers work together to improve patient care and reduce costs. When they successfully achieve cost savings — that is, when they operate more efficiently and effectively than projected — the financial benefits are shared among the participating providers. This incentivizes teams to provide high-quality care while being mindful of expenses.

Gain sharing aligns the interests of different providers within the ACO structure, ensuring that all parties involved have a stake in the outcomes of their collective efforts. This successful collaboration is essential for ACOs, which aim to improve the quality of care while keeping expenditures down, thereby achieving better patient outcomes in a financially sustainable manner. The other options, while related to financial arrangements, do not specifically capture the essence of the shared financial risk and reward mechanism inherent in gain sharing.