“In this third post in our series on navigating strategic risk contracting, we’ll discuss what takes place after negotiations conclude and a health system has entered into a gain sharing or other type of risk sharing contract.
This is where the work to succeed on those contracts begins and effective tracking of contract performance is key. After a contract starts, a health system cannot afford to wait 18 months to assess its performance. Ongoing and effective performance tracking is important and takes time, resources, and technology investments.
As the shift from fee-for-service payment models to value-based care continues, it becomes increasingly important for organizations to be able to understand financial, operational, clinical, and claims data to evaluate their contract performance. Health systems must continuously assess their performance in this type of deal so that they make changes – both to their processes of care and the contract terms — during the contract period.”