Common use of INITIAL PHASE PERFORMANCE METRICS Clause in Contracts

INITIAL PHASE PERFORMANCE METRICS. 7.1.1. The Department shall calculate the regional baseline costs and utilization measures and make the baseline costs, calculation methodologies and utilization measures available to the Contractor in a reasonable timeframe. The Department shall calculate future cost and utilization measures using the same methodology as the baseline costs and utilization measures, and shall use these future costs and utilization costs to measure the Contractor’s performance. 7.1.2. The Department shall only authorize the Contractor to enter the Expansion Phase if the future cost measurements show an aggregate reduction in costs for the Contractor’s Region that meets the Department’s budget goals. The Department shall determine whether any cost reduction meets the Department’s budget goals in its sole discretion. The Department shall make reasonable efforts to provide the Contractor with cost reduction objectives so that the Contractor and its partners can align their efforts with the Department’s program goals. 7.1.3. The Department shall measure the Contractor on the metrics contained in the Performance Target Table, as described in the following section on Expansion Phase Performance Metrics, during the Initial Phase. The Department shall make these measurements in order to create appropriate baselines and evaluate the Contractor’s performance during the Initial Phase. The Department shall not pay the Contractor any incentive or other payment for meeting or exceeding any performance target before July 1, 2012. 7.1.3.1. The performance targets used to measure performance during the Initial Phase shall be the same as those used during the first year of the Expansion Phase. 7.1.3.2. The Department shall provide the Contractor monthly data on each performance target during the incentive payment pilot program. The data used by the Department to calculate the estimated incentive payment the Contractor would receive if the program was operational shall be based on the most recent ninety (90) day period for which complete data is available.