Designing ACO Shared Savings Distribution

A shared savings distribution methodology is more than a way to allocate payments. It is an opportunity for accountable care organizations (ACOs) to align financial incentives with organizational priorities and recognize the contributions of participating providers. This eBook explores key considerations for designing a shared savings distribution methodology, including defining the distribution pool, establishing eligibility and participation requirements, selecting performance measures, and structuring payment calculations. It also highlights the tradeoffs ACOs must navigate and the operational considerations involved in developing a methodology that is understandable to participants, supports organizational goals, and can be administered consistently.