StacksVerified U.S. regulatory reference

42 CFR §425.104

Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
  1. (a)An ACO must be a legal entity, formed under applicable State, Federal, or Tribal law, and authorized to conduct business in each State in which it operates for purposes of the following:
    1. (1)Receiving and distributing shared savings.
    2. (2)Repaying shared losses or other monies determined to be owed to CMS.
    3. (3)Establishing, reporting, and ensuring provider compliance with health care quality criteria, including quality performance standards.
    4. (4)Fulfilling other ACO functions identified in this part.
  2. (b)An ACO formed by two or more ACO participants, each of which is identified by a unique TIN, must be a legal entity separate from any of its ACO participants.
  3. (c)An ACO formed by a single ACO participant may use its existing legal entity and governing body, provided it satisfies the other requirements in §§ 425.104 and 425.106.