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Table 3 How ACO incentives influence providers

From: Sustainable health information exchanges: the role of institutional factors

Fee for service under Medicare

Incentive payments for ACOs

Fee-for-service payments. In general, doctors and hospitals are paid more when they give patients more tests and do more procedures.

Bonuses when ACOs keep costs down and meet specific quality benchmarks, focusing on prevention and carefully managing patients with chronic diseases. Providers get paid more for keeping patients healthy and out of the hospital.