Healthcare Valuation: The Financial Appraisal of Enterprises, Assets, and Services, Volume 2

Glossary

501(c)(3) Exemption Healthcare providers may qualify for a federal tax exemption if they meet the Internal Revenue Service (IRS) requirements for charitable organizations under section 501(c)(3) of the Internal Revenue Code (IRC), if the enterprise is “organized and operated exclusively for exempt purposes,” and none of its earnings are allocated to private shareholders or individuals. Exempt purposes include those that are charitable, religious, educational, and scientific.

Accountable Care Organization (ACO) Healthcare organization in which a set of providers, usually physicians and hospitals, is held accountable under a contract with a payor(s) (i.e., Medicare for federal ACOs and any number of commercial payors for commercial ACOs) for the cost and quality of care delivered to a specific local population.

Accreditation Accreditation is a process in which private organizations assess participating institutions and programs and issue accreditation certificates to those that meet their requirements. Ensuring the quality and safety of services is the focus of most accreditation standards; however, many also include documentation and other requirements.

ACO Participant “An individual or group of ACO provider(s)/supplier(s), that is identified by a Medicare-enrolled TIN, that alone or together with one or more other ACO participants comprise(s) an ACO, and that is included on the list of ACO participants that is required under [42 CFR] § 425.204(c)(5).”

ACO Professional ...