Financial risk sharing/Definition

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. ([National Library of Medicine]])