Finance and Payment Approach for ACOs

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This paper covers:

  • the payment approach, comprised of three main elements:
    • the ‘integrated budget’ or single payment made to the new entity;
    • a ‘gain / loss share agreement’ to align financial incentives across health services provided for the population; and
    • the ‘Improvement Payment Scheme’ designed to incentivise improved outcomes
  • the structure of these three elements, and how they can be contracted for.