In which reimbursement method are payments adjusted based on the patient’s health status and characteristics?

The correct answer pertains to how Accountable Care Organizations (ACOs) manage reimbursement through a method that incorporates adjustments based on the patient's health status and individual characteristics. ACOs aim to increase the quality of care while reducing costs, and one of their key strategies involves utilizing health data to tailor payments. This approach allows them to assess the complexity of patient cases, ensuring that those with higher health risks or varying medical needs receive appropriate funding.

By focusing on patient-centered care and performance metrics, ACOs can better address the specific needs of their patient population. This contrasts with other models, like Fee-for-Service, which typically pays providers for each service rendered regardless of patient health status, and Bundled Payments, which involves a single payment for a range of services related to a specific treatment or condition without explicitly adjusting for individual characteristics. Global Payment Models, while they may include general adjustments, do not focus as specifically on detailed patient characteristics as ACOs do.