Under two-sided risk models, providers are exposed to losses in addition to gains.

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

Under two-sided risk models, providers are exposed to losses in addition to gains.

Explanation:
Two-sided risk models require providers to share both upside and downside of performance. In this setup, compensation hinges on meeting cost and quality targets, so there can be gains when costs are under benchmark and quality is good, and losses when costs run over or outcomes fall short. This means providers are exposed to losses in addition to gains, unlike one-sided risk arrangements that offer upside (or only downside) without this dual exposure.

Two-sided risk models require providers to share both upside and downside of performance. In this setup, compensation hinges on meeting cost and quality targets, so there can be gains when costs are under benchmark and quality is good, and losses when costs run over or outcomes fall short. This means providers are exposed to losses in addition to gains, unlike one-sided risk arrangements that offer upside (or only downside) without this dual exposure.

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