Shared Savings : An Approach To Healthcare Taxation Reforms : Case Study

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6. Shared savings is an approach to healthcare payment reform that has been proposed as the key mechanism for encouraging the creation of “accountable care organizations (ACO).” The ACO contracts with payers to be accountable for the entire continuum of care provided to a defined population, and if the costs of care provided are less than targeted amounts, and certain quality measures are achieved, the ACO and the payer are rewarded with a portion of the savings. Under the Medicare Shared Saving Program, the Centers for Medicare & Medicaid Services (CMS) will contract for ACOs to assume responsibility for improving quality of care provided, coordinating access across providers, and reducing the cost of care that Medicare beneficiaries…show more content…
Many jurisdictions report shortfalls in the number of trained health human resources to meet population health needs and/or service delivery targets, especially in medically underserved areas. Some studies suggest that workplace stress is pervasive in the healthcare industry due to inadequate staffing levels, long work hours, exposure to infectious diseases and hazardous substances leading to illness or death, and in some countries threat of malpractice. According to a report from the U.S. National Institute for Occupational Safety and Health, “healthcare workers have higher rates of substance abuse and suicide than other professions and elevated rates of depression and anxiety linked to job stress.” Elevated levels of stress were also linked to high rates of burnout, absenteeism and diagnostic errors, and to reduced rates of patient satisfaction (, 2008). In the U.S., the 2010 federal budget invested $330 million to increase the number of doctors, nurses and dentists practicing in areas of the country that are experiencing shortages of health professionals. The budget expands loan repayment programs for physicians, nurses, and dentists who agree to practice in medically underserved areas. This funding will enhance the capacity of nursing schools to increase the number of nurses. The budget’s new resources will sustain the expansion of the healthcare workforce
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