ACO’s are organizational structures where hospitals, physicians and others can work together to provide the most cost-effective care and be held accountable for outcomes achieved. Presumably, the ACO should be able to accommodate or respond to any of the new payment mechanisms – full capitation, partial capitation, bundled or episode-of-care-based payment –and various add-on payments for coordinating care or achieving defined quality and cost results.Another benefit of ACO’s is they create incentives for hospitals and physicians to reduce unnecessary admissions through better disease prevention and primary care; reduce preventable readmissions through better coordinated care; and reduce unnecessary and costly use of hospital emergency rooms (Haas, 2011).This delivery care system is advantageous to patient outcomes because it uses evidence-based protocols and research, patients can be cared for in different settings including the home and uses budgets and resources for the least expense possible. This helps with patient outcomes because its goal is to reduce admissions to the hospital and promote preventative and primary care resulting in less cost for the patient and the facility.