Financial Risk Sharing

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In health care economics, financial risk sharing is "any system which allows payors to share some of the financial risk associated with a particular patient population with providers. Providers agree to adhere to fixed fee schedules in exchange for an increase in their payor base and a chance to benefit from cost containment measures. common risk-sharing methods are prospective payment schedules (prospective payment system), capitation (capitation fees), diagnosis-related fees (diagnosis-related groups), and pre-negotiated fees."^[1]

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