Building a Profitable Risk-Sharing Model
Focus on Economic & Clinical Outcomes
Why hold only yourself accountable for results? Your reimbursement levels depend more and more on measurable outcomes. So, why not find technology partners willing to get compensated for delivering results? Finding vendors and partners to engage in risk sharing can contribute directly to improved clinical and process outcomes and cost savings by collecting and analyzing data that impacts reimbursements.
5 Critical Steps
- Build a cross-functional teamSuccessful risk-sharing models require input from multiple departments. Someone from finance and supply chain are always involved. But critical input also comes from clinical staff,
operations, infection prevention, environmental services and other groups.
- Select & agree on desired outcomesMake your criteria highly measurable. Whether you are targeting cost savings, patient satisfaction levels, infection prevention, room turnover times or any other goal, require your partner(s) to measure and report on what matters most to you. Agree on what success looks like before you begin to set appropriate expectations throughout the relationship (e.g. help hand hygiene compliance reach 85%).
- Set compensation levels based on performanceOnce your metrics are established, have your finance and supply chain colleagues work with your partner(s) to determine compensation models based on performance.
- Establish channels for clear two-way communicationsIdentifying internal champions within your hospital, selecting one or two key points of contact with your partner(s), and creating a cadence of daily or weekly communication will help keep your efforts on track. Adjustments will invariably need to be made to your initiatives and this simplifies that process.
- Schedule regular reviews of measurable progressData collection and reporting are critical. Regular check-ins allow you to track progress, maintain alignment and make necessary adjustments. They will also prevent potential disagreements when it comes time to determine how your partner(s) will be compensated based on performance.
- Make risk sharing part of your RFP process
- Start with some easy-to-measure trials
- Ask your department leaders for risk sharing ideas
Want help exploring the risk-sharing concept? Ecolab Healthcare has been exploring risk sharing models with a number of healthcare systems and hospitals. We've developed best-practices and other helpful insights. To learn more about a risk sharing partnership with Ecolab, visit www.ecolab.com/HCRiskShare.