Accountable Care Organizations (ACOs) can be viable as risk-bearing entities. ACOs meet all the characteristic of risk-bearing entities. ACOs assume financial responsibility for a distinct set of benefits by agreeing to take prepayment for part or the whole cost of care. ACOs are willing to share medical financial responsibility for organizing the care of specific groups. ACOs can take responsibility for all the costs for care for their patients and minimize the total care costs since their groups of patients can share in the savings.