Capture savings

Capturing savings involves negotiating with payers – commercial, Medicare, and Medicaid – an arrangement in which they calculate healthcare cost savings against appropriate benchmarks and then return to the community some fraction of those savings.  These savings may be used to fund the initiatives on the preceding pages, or to reward providers (see below).  Like the innovation fund, if some savings are unused in one year, that remainder rolls over to the next year.  Captured savings are not segregated from innovation funds; the two are merged as total funds available to the community.