According to the most recent Kaiser Family Foundation survey, 20% of all healthcare organizations expect to take “downside risk” in the next two years. This is up from 3% who currently do.
What does this mean? It means if they don’t perform, your employer will have to bear some of the costs out of their own pocket. Not just accept less money, but actually write the check.
Expect that they will try to pass on some, if not most of that risk to you in the form of an altered compensation formula.
Based on the organizations I’ve seen, expect that they will do so poorly.
Watch very carefully for changes to your compensation plan. If you’re asked to take downside risk, ask for all the financials to be completely transparent.
As a clinician, taking “downside financial risk” without transparency is an invitation to be stolen from.
So if you’re suddenly required to take downside risk without any commensurate increase in financial transparency, understand that you will almost certainly be defrauded by your employer.
Change your personal financial plan and/or get a new job, but for heaven’s sake don’t take their data at face value.
Verify or move on.