What is risk-sharing in healthcare?

Risk-sharing in healthcare refers to a financial arrangement in which healthcare providers, such as hospitals and physicians, take on a portion of the financial risk associated with patient care. This model is designed to promote efficiency and cost-effectiveness in healthcare delivery. By assuming some level of financial risk, providers are incentivized to focus on the quality of care they deliver, as their reimbursement may depend on patient outcomes and satisfaction rather than solely on the volume of services provided.

In this model, if providers can deliver care more efficiently and keep costs down while maintaining or improving the quality of care, they can share in the financial savings. Conversely, if they do not manage care effectively and costs exceed targets, they may face financial penalties. This risk-sharing arrangement aligns the interests of providers and payers, ultimately aiming to improve patient care while controlling costs.

The other options do not accurately capture the essence of risk-sharing. Increasing costs for patients or transferring risk entirely to patients would not create an incentive for efficiency and could negatively impact patient outcomes. Similarly, limiting healthcare provider accountability would undermine the purpose of risk-sharing, which is to enhance the responsibility of providers in managing both costs and care quality effectively.