September 2016 | Derek DeLia | Calculating Shared Savings: Administrative Formulas Versus Research-Based Evaluations
Shared savings lie at the core of many recent health care payment and delivery reforms, most prominently those involving accountable care organizations (ACOs). The distribution of savings between payers and providers depends crucially on the establishment of whether savings were generated by new provider activities, and if so, the magnitude of such savings. Two approaches to savings assessment are commonly applied: 1) administrative formulas and 2) research-based evaluation.