Western Governors University (WGU) HLTH2160 D393 History of Healthcare in America Practice Exam

The shared savings model is designed to create a framework in which healthcare providers work collaboratively to reduce overall costs while improving the quality of care provided to patients. In this model, providers are incentivized to coordinate patient care and manage resources efficiently. When they successfully lower costs beneath a predetermined benchmark, they share in the savings achieved. This encourages a focus on preventive care and post-acute care management, which can lead to better patient outcomes and lower healthcare expenditures.

Unlike fee-for-service models, which reward providers for the volume of services rendered regardless of the outcomes, or capitation models, which pay a set amount per patient regardless of the level of services delivered, the shared savings model aligns the financial interests of healthcare providers with the overall well-being of patients. The emphasis on collaboration among care teams enhances patient engagement and ensures that care decisions are made with the patient's overall health and financial impact in mind. The value-based care model encompasses a broader range of approaches that prioritize quality and outcomes, but shared savings specifically highlights the collaborative aspect in cost reduction.