By Sam Baker - 01/10/13 04:42 PM EST
ACOs are designed to bring together hospitals, doctors and other medical providers to coordinate the full spectrum of care for each patient. The idea is to shift Medicare payments toward quality and outcomes, rather than paying for each procedure.
ACOs receive a percentage of the savings they bring to Medicare as an incentive to accept the new payment structure.
Roughly half of the ACOs approved so far are centered around physicians, HHS said in a statement.