Question

For a value-based purchasing model-

• Identify examples of shared risk models, such as population health.
• Analyze budgetary and financial implications of shared risk models on health care management practices and decisions.

Answer 1

Shared risk model has become an integral part of healthcare industry. Healthcare providers are sharing cost savings as well as disincentives with the consumers, so as to share the burden of extra premium and excess costs of healthcare service delivery.

This risk sharing model has proved to be quite fruitful for the healthcare industry. Cost of care has reduced significantly and more people are getting covered under healthcare insurances. The risk sharing model has shifted the whole objective of healthcare service delivery to value based service instead of volume based service. Though the initial budget requirements of the healthcare has increased, the cost savings after the service delivery is balancing it out quite evenly. Hence we can say that shared risk model can prove to be quite disruptive for the overall healthcare industry.