MedCity News November 16, 2025
Shared savings programs are appealing in theory, but the incentives are too weak and unpredictable to support a scalable business model for hospitals, said Patrick Runnels, chief medical officer of University Hospitals.
Shared savings programs are useful for nudging providers’ behavior toward value, but they aren’t a true payment model that can sustain a health system, according to one executive.
“Shared savings contracts are a really great mechanism for getting people to start to pay attention to value — but their structure is, by definition, not overall how we’re going to get paid for our care,” said Patrick Runnels, chief medical officer of University Hospitals in Cleveland, during an interview last month at Reuters’ Total Health conference in Chicago.
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