The unfulfilled cost-control promise of provider risk sharing

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By Richard A. Kipp, Lisa L. Mattie | 07 June 2010

Has the time finally come for provider risk sharing? In the past, the concept has attracted substantial attention as a means of controlling healthcare costs. But efforts to implement provider risk-sharing strategies have often not lived up to their promise.

With healthcare costs reaching unprecedented level—and with certain reform provisions encouraging providers to shoulder more risk—the concept is again attracting attention. Given the far more precise tools now available to both payers and providers—not to mention the possibility for better coordination among all stakeholders—the healthcare system may now be primed for a successful move toward provider risk-sharing strategies.