Common use of Performance Incentive Arrangements and Shared Savings Arrangements Clause in Contracts

Performance Incentive Arrangements and Shared Savings Arrangements. HMHP may enter into Payor contracts under which HMHP Providers are paid for Covered Services under their existing, direct contracts with Payors, but are eligible to receive a financial incentive from the Payor through HMHP for meeting certain quality and utilization metrics (“Performance Incentive Arrangements”). HMHP may also enter into Payor contracts under which HMHP Providers are paid for Covered Services under their existing, direct contracts with Payors, but are eligible to share with other HMHP Providers any savings achieved by HMHP for the efficient delivery of care (“Shared Savings Arrangements”). The Practice and Participating Physicians hereby agree to participate in any and all performance incentive arrangements or shared savings arrangements (hereafter, “Incentive Arrangements”) HMHP may negotiate with Payors. Under these Incentive Arrangements, HMHP Providers shall not be guaranteed payments, but also shall not be required to make any payments in the event quality, utilization or cost metrics are not achieved. HMHP will adopt specific Policies and Procedures regarding the requirements Practice and Participating Physicians must meet to be eligible to receive payments under the Incentive Arrangements. The Practice and Participating Physicians understand that such Incentive Arrangements are intended to encourage Practice and the Participating Physicians to adhere to HMHP’s quality improvement and utilization management programs.