Physician incentive models and surplus distribution

One aspect often initially overlooked during the development of a shared risk program is how the health system will divide up a surplus or provision for a deficit among the different participants that make up the health system’s network. Many attributes define a successful distribution model, and surplus may be allocated to various individuals or groups in a number of different ways. The optimal solution will vary from one health system to another and may include a number of considerations that may be unique to each health system.

Milliman can assist health systems in the development of the distribution model and ensure it is tailored appropriately to the unique circumstances and strategic goals of each system. Milliman’s extensive and broad provider client base means we have experience developing, reviewing, and refining many different distribution models for clients ranging from fully integrated health systems to independent physician practices.