Case Studies

Risk-Sharing Simulation

Client: Multi-Hospital Joint Venture, 2001

Parsing the Premium Dollar: Computer Simulation Assists Doctor-Hospital Talks

As hospitals ventured into shared-risk contracts with physicians, the allocation of global premium monies was a natural point of contention.

In this project, a model used regional actuarial cost expectations to distribution premium revenue across a large number of service categories. Once allocated, discussions advanced on a service-by-service basis, making the negotiations more manageable.