Common use of Savings/Losses Amount Clause in Contracts

Savings/Losses Amount. ‌ The ACO’s aggregate gross savings or losses will be determined by subtracting the expenditure incurred by Performance Year Aligned Beneficiaries in the Performance Year from the ACO’s benchmark expenditure. The risk arrangement selected by the ACO will determine the portion of the aggregate gross savings that will be paid to (or the portion of the aggregate gross loss that will be recovered from) the ACO. The Model offers two risk arrangements:

Savings/Losses Amount. ‌ The ACO’s aggregate gross savings or losses will be determined by subtracting the expenditure incurred by Performance Year Aligned Beneficiaries expenditure calculated in the Performance Year accordance with Section IV.C of this Appendix from the ACO’s benchmark expenditurePerformance Year Benchmark calculated in accordance with Section III of this Appendix. The risk arrangement Risk Arrangement selected by the ACO in accordance with Section X.A of the Agreement will determine the portion of the aggregate gross savings or losses in relation to the Performance Year Benchmark that will be paid accrue to (the ACO as Shared Savings or the portion of the aggregate gross loss that will be recovered from) the ACOShared Losses. The Model Initiative offers two risk arrangementsRisk Arrangements: