Crain's Detroit Business
By Jay Greene
Under Medicare's shared savings program, which begins in January, accountable-care organizations can choose between two financial risk models.
In the "one-sided risk model," which is considered the less risky model, ACOs share in any savings for the first two years of a three-year contract. However, during the third year, ACOs could lose money if the cost of patient care exceeds the Medicare average.
But in the "two-sided risk model," the ACO stands to either make money or lose money all three years.