Milliman Inc. released a brief examining provider risk sharing models as a means to reduce health care costs under health reform.  The brief outlines how provider risk sharing works and examines past attempts at implementing risk sharing models.  The authors suggest that payers and providers are better equipped now than ever to utilize provider risk sharing models and that they may be useful in slowing cost growth. 

From the report: While healthcare reform does not provide many immediate mechanisms for limiting increases in the underlying cost of care, it does call for the creation of pilot programs that build off an old concept: provider risk sharing.  The concept makes sense: Decisions at the point of care determine utilization, and utilization is a major determinant of healthcare costs.  Provider risk sharing creates and incentive for increased managed care- and the accompanying improved quality and efficiency that come with improved utilization- and thereby offers an alternative to a fee-for-service payment system.

Full report: Controlling healthcare costs the old, new way (PDF | 145KB)

Milliman Inc.  (2010).  Controlling healthcare costs the old, new way.  Kipp, R. and Mattie, L.