What are shared savings models designed to do?

Shared savings models are designed primarily to incentivize healthcare providers to reduce spending while maintaining or improving the quality of care delivered to patients. These models create a financial incentive for providers to work collaboratively within a healthcare system to find efficiencies and reduce unnecessary costs.

When healthcare providers successfully lower their expenditures below a predetermined budget or limit, they can share in the savings generated from that reduction. This structure not only encourages providers to adopt more cost-effective practices but also promotes better coordination of care, which can lead to improved patient outcomes. The shared savings approach aligns the financial interests of healthcare providers with the goal of delivering value rather than volume.

In contrast, the other options focus on individual aspects of healthcare delivery—such as patient compliance or satisfaction—which, while important, do not directly encapsulate the overarching goal of shared savings models.