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Key components of the alternative contract model

Key components of the alternative contract model. Unique contract model : Physicians & hospital contracted together as a “system” – accountable for cost & quality across full care continuum Long-term (5-years) Controls cost growth: Global payment for care across the continuum

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Key components of the alternative contract model

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  1. Key components of the alternative contract model Unique contract model: • Physicians & hospital contracted together as a “system” – accountable for cost & quality across full care continuum • Long-term (5-years) Controls cost growth: • Global payment for care across the continuum • Annual inflation tied to CPI • Incentive to eliminate clinically wasteful care (“overuse”) • Improved quality, safety and outcomes: • Robust performance measure set creates accountability for quality, safety and outcomes across continuum • Substantial financial incentives for high performance (up to 10% upside) Expanded Margin Opportunity Efficiency Opportunity Inflation Performance INITIAL GLOBAL PAYMENT LEVEL

  2. Performance Achievement Model

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