Shared Savings Distribution

More and more ACOs will be faced with the question: How should shared savings payments be distributed among our stakeholders?

The inherent uncertainty in beneficiary attribution poses a very real risk to ACOs’ stability and viability. Provider turnover has the potential to impact an ACO’s attributed population at a scale far greater than patient compliance and engagement do.

As providers determine whether to join an ACO—and in progressive or competitive markets, choose among multiple ACO suitors—one of their key considerations will be the ACO’s shared savings distribution methodology.

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Apples to Apples: No Fairness Without Risk Adjustment

Regardless of the specifics of proposed shared savings models, Salient presents one common thread that represents an indispensable equalizer for ensuring fairness: the application of risk adjustment to the attributed population. Without a way to normalize by patient severity to take account for relative case mixes — such a formula runs the risk of unduly favoring the largest, highest volume providers without regard of the complexity of care rendered.

Salient helps you get there. 

Only by applying a recognized risk adjustment schema to the attributed population can ACOs truly compare “apples to apples” and accurately determine the relative contribution by their providers, in proportion to which they can then distribute fairly the incentive payments realized by the ACO.

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Shared Savings DIstribution White Paper