Accelerating and Aligning Population-based Payment Models: Financial Benchmarking

June 2016
Topics: Payment Models, Mathematics, Public Health
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The White Paper provides guidance on the financial benchmarking process, with a goal of creating a set of consensus recommendations for use nationally. At a high level, the Work Group recommends the following:

  • Approaches to financial benchmarking should encourage participation in the early years of the model's progression, while driving convergence across providers at different starting points toward efficiency in the latter years.
  • Risk adjustment must strike a fine balance such that providers who serve higher-risk or disadvantaged populations are not unduly penalized and disadvantaged populations do not receive substandard care.

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