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a patient within the managed care plan pays $500 each month for a benefits package. The health plan keeps $75 of that payment for administrative

a patient within the managed care plan pays $500 each month for a benefits package. The health plan keeps $75 of that payment for administrative expenses, and the remaining amount is spread between primary care, pharmacy, specialty care, and hospital. There is also a bonus pool where surpluses/deficits would be stored meaning that if overall costs are below the allocated PMPM balance, the provider would receive this bonus amount, but if costs exceed the PMPM balance the provider is on the hook for reimbursing the managed care plan. What are the positives/negatives for healthcare providers within these types of arrangements? How do arrangements such as these impact provider decision-making in regard to encouraging cost-effective behaviors

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