What amount of shared savings will you have to pay back to the insurer due to your downside risk?

Referring to the Module 4 Supplemental PowerPoint (slide 24), respond to the following:

You are the director responsible for the success of your health system’s commercial ACO contracts. You’ve done a great job with quality so your focus turns to your shared savings.

You need to report back to your leadership on your two largest ACO arrangements. The financials are as follows:

Arrangement #1:

Total Attributed Population: 30,000 patients

Agreed Upon Budget: $165 Million

Percentage of Risk: 30% upside and 10% downside

Results:

Medical PMPM: $310

Pharmacy PMPM: $112

What is the shared savings amount your organization can expect?

Arrangement #2

Total Attributed Population: 45,000

Agreed Upon Budget: $230 Million

Percentage of Risk: 35% upside, 12% downside

Results:

Medical PMPM: $350

Pharmacy PMPM: $115

What amount of shared savings will you have to pay back to the insurer due to your downside risk?

Submit your response in a Word document. Include your calculations for each arrangement and explain your logic for each step.