Shared savings is a risk-based payment model designed to reward providers for improving the total cost and quality of care for a defined patient population. Providers voluntarily working under shared savings get paid for each procedure they perform, and many receive bonus income for reducing total spending on attributed patients below a predetermined target.
Providers can succeed only under a shared savings model by reducing their spending growth for plan beneficiaries, meaning that they must bill for fewer services over time. To achieve a sustainable reduction in demand, providers must collaborate to improve care management and care coordination for populations, focusing on the total cost of care across settings.
Members of the Health Care Industry Committee can log in to read more and download the cheat sheet. Not a member? Visit our website or contact us to learn more.
Next, Check Out
C-Suite Cheat Sheet: Value-Based Purchasing