Questions On Risk Sharing Arrangements

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CONTENTS
Introduction 2
Basic Risk Arrangement Structures 3
Common Problems in Risk Sharing Contracts 4
Some Additional Mistakes to Avoid in Risk Sharing 5
Best Practices in Risk Transfer 7
When Hospitals Share Risk With HMOs 7
Approach for Risk Sharing Arrangements 8
Examples of Risk Sharing Arrangements 9
Provider Risk Sharing In Medicaid Managed Care Plans 12
Device Makers Risk Sharing Contracts with Hospitals 13
Walgreens – Going at Risk for Re Admissions 14
Managed Care Risk Sharing Arrangements 15
• Factors Influencing the Target Claims 17
• Timings of Risk Sharing Arrangements 17
References 18

Introduction
Risk sharing occurs when both the parties finds the risk and agrees to share the loss that may occurs due to that risk. The co investors and joint ventures get into the risk sharing arrangements by defining their true contribution and limiting their commitments related to their future and financial commitments. The risk sharing arrangements or contracts are usually prevented into the “Outsourcing Transactions” where one has physical control over the process and the other party has been prevented from such control and therefore these kind of arrangements prefer to go on with the “Fee for Service” Model. (1)
When we talk about the risk sharing arrangement in managed care so these arrangements between a managed care organization and the employer are used by the employer to either make sure about the success of the managed care plan for a short interval of time

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