How Shared-Risk Financials Can Increase Revenue for Healthcare Organizations

Nov 23, 2023
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Navigating the healthcare landscape often means tackling substantial costs, especially when adopting new technology. But what if there was a smarter way that didn’t risk your budget? Shared-risk financials can be a game-changing solution that ties costs to financial performance.

Shared-risk financials aren’t just about spending less; they’re about teaming up for success, pushing boundaries, and ensuring financial stability for everyone involved. With shared risk, growth isn’t a solo journey. It also offers exciting opportunities to make money and develop strong partnerships based on winning together.

The Concept of Shared-Risk Financials

The shared-risk financial model is a collaborative approach that aligns the costs of healthcare services and technologies with the financial outcomes they produce. At its core, it’s a model built on a foundation of shared objectives.

This innovative financial structure addresses the limitations of conventional payment models that often place a heavy burden on healthcare organizations — particularly those in rural areas that may struggle to fund advancements. Traditional models typically require significant upfront costs, which can deter providers from pursuing potentially beneficial innovations.

Instead of a conventional fee-for-service or fixed-fee model — where the financial risk rests heavily on the healthcare provider — shared-risk agreements and contracts distribute risk between providers and suppliers. This means both parties become stakeholders in the success of whatever is being provided.

Doctors looking at medical scans

Driving Revenue Through Performance

By tying payments to performance outcomes, providers can channel funds into areas with the highest potential for return on investment. This model ensures the financial interests of service providers are directly aligned with the performance of their products or services. It creates a powerful incentive for them to deliver the highest quality.

The performance-driven nature of shared-risk agreements means service providers aren’t just vendors but active partners in the pursuit of excellence. They have a stake in the game, which motivates them to continuously improve and refine their offerings. For healthcare organizations, this translates into access to better technologies and services, leading to enhanced patient care and, ultimately, increased revenue.

The shared-risk model fosters a culture of continuous improvement and innovation, as both providers and suppliers are motivated to exceed benchmarks and drive growth, knowing their financial success is mutually dependent.

The nTrust Example

The nTrust program exemplifies the shared-risk model as it relates to critical EHR advancements. With this model, nTrust allows healthcare providers to access the latest EHR technologies without the prohibitive upfront costs typically associated with new systems. This approach mitigates financial risk for providers and enables revenue growth opportunities. Through an advanced EHR system, healthcare organizations can enhance service delivery, operational efficiency, and patient satisfaction — all of which contribute to an improved bottom line.

The nTrust program also cultivates stronger partnerships. These relationships are built on a foundation of trust and mutual interest, with both parties invested in the long-term success of EHR implementation. This partnership extends beyond mere transactional interactions and becomes a strategic alliance aimed at reshaping the future of healthcare technology.

Shared Risk, Shared Reward

Shared-risk financials make growth and innovation in healthcare more accessible and less of a gamble. This approach isn’t just about saving money; it’s a team effort where success benefits everyone involved. It means more opportunities; stronger partnerships; and a bigger, better future for healthcare providers. It’s time to embrace shared-risk models and step into a future where everyone wins by working together.