Health Affairs July 17, 2018
As important as it is to promote experimentation in value-based payment, it is equally essential to determine which approaches to payment successfully enhance the quality, efficiency, and affordability of care and in what context. Below, we examine the evidence behind shared savings—a payment arrangement often used between payers and accountable care organizations (ACOs). For the time being, the momentum of the ACO movement has seemed to outstrip the amount of evidence we have on the effectiveness of shared savings, ACOs, and how they work together.
Shared Savings: What Is It?
Shared savings payment arrangements have given providers an “on ramp” or “training wheels” for moving away from traditional fee-for-service payment. Some consider shared savings to be a form of pay...
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