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Practice & Business

Value-Based Contracts Without the Hype

What independent groups should know before signing a risk arrangement, and the three numbers to model first.

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Value-based care has been the future of medicine for a long time. For independent groups, the question is not whether it is coming but whether a given contract is worth the risk today.

Model before you sign

Understand your attributed population, your current cost baseline, and the quality measures that gate shared savings. If you cannot produce those three numbers, you are not ready to take downside risk.

Upside only arrangements can be a sensible way to build the data infrastructure first.

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Priya Natarajan, MBA

Priya Natarajan has run operations for multispecialty groups and writes The Script Pad's practice management column.

This article is for professional education and does not replace clinical judgment. Treatment decisions should be based on the individual patient and current guidelines.