In ACO contracts, which entity typically earns shared savings?

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Prepare for the HCD Healthcare Payment and Delivery Models Exam. Utilize flashcards and multiple-choice questions, each complete with hints and detailed explanations, to ensure success.

Multiple Choice

In ACO contracts, which entity typically earns shared savings?

Explanation:
Shared savings in ACO contracts are the incentive paid to the provider network that assumes responsibility for cost and quality. When care for attributed patients costs less than the negotiated benchmark and quality targets are met, the payer returns a portion of those savings to the ACO. That money is then distributed to the providers within the ACO according to the agreement. Patients don’t receive these savings, and while payers fund and administer the program, the actual shared savings go to the providers in the ACO. So, the providers in the ACO are the ones who typically earn the shared savings.

Shared savings in ACO contracts are the incentive paid to the provider network that assumes responsibility for cost and quality. When care for attributed patients costs less than the negotiated benchmark and quality targets are met, the payer returns a portion of those savings to the ACO. That money is then distributed to the providers within the ACO according to the agreement. Patients don’t receive these savings, and while payers fund and administer the program, the actual shared savings go to the providers in the ACO. So, the providers in the ACO are the ones who typically earn the shared savings.

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