Shared SavingsA no-risk alternative to CMS Bundled Payments program

shared savings by dynafios

Reduce costs without reducing revenue

The healthcare landscape is volatile with the cost of care continually on the rise. The need to engage physicians has never been more important than it is today. Dynafios Shared Savings Program addresses both of these issues with a method to reduce expenses within the supply and pharmaceutical arenas. There is no outlay of expenditures by the hospital. No need for an additional FTE. And, results are always positive.


On December 29, 2017, the Office of the Inspector General (OIG) issued Advisory Opinion #17-89 on Shared Savings Programs outside of ACO or CMS. Key elements were identified within the Advisory that allowed the OIG to look upon this favorably.

The Dynafios Shared Savings Program

Dynafios has created a Shared Savings program that complies with the key elements within the OIG Advisory. Our Shared Savings program:

  1. Provides oversight by a program administrator.
  2. Offers third-party identification of the costs and a quality analysis. Dynafios helps to identify the focus within the three-year agreement term. During the agreement, Dynafios provides oversight of all documentation of cost savings and continued quality monitoring, and calculates a total savings from onset of the agreement.
  3. Creates a process so patients are notified of the agreement prior to consent for surgery and are aware they have the option to review the agreement, if desired.
  4. Calculates savings by determining the baseline cost—current cost multiplied by the number of patients within the current year. Dynafios ensures no savings are distributed for any additional patients and each year, Dynafios resets the baseline cost on the previous year’s performance and patients within the Federal Health Care program.
  5. Ensures savings are shared on 50/50 basis with the program administrator’s fees paid from the overall savings. The Practice must distribute savings on a per capita basis within the group and the sum of the three-year distributions to the Practice cannot exceed the original savings targets.

The Dynafios Shared Savings program is committed to achieving better health for individuals, better population health and lowering growth in expenditures.

How can we help you?

Contact us by submitting an inquiry online.

“Dynafios’ healthcare expertise will be pivotal in integrating the hospital and physicians to further enhance patient outcomes while better managing the delivery costs of healthcare.”

Bill Graham
President, Dignity Health Sequoia Hospital

Reduce Costs, Not Revenue.
Learn more about Dynafios
Shared Savings Program today!

I would like to discuss:

General Shared Savings FAQs

Anything with an acquisition cost.

The baseline cost per identified savings opportunity is determined at the beginning of each year of the agreement.  At the end of the year, the same methodology is used to determine the total savings achieved by item.

A third party must be involved such as Dynafios, who serves as the Program Administrator.

At the beginning of the multi-year agreement.

Savings are distributed at the end of each year of the agreement.  The Program Administrator’s fees are subtracted from the overall savings and the balance is distributed equally to the hospital and the physicians.  Physicians receive equal portions of the savings.  No, quarterly distributions are not allowed.

Yes.  Whatever the amount of savings that are identified in the beginning of the agreement is the total amount which can be distributed. 

Yes. Baselines are reset each year.

All supplies must remain available at the hospital, key quality indicators are monitored, and the severity of patients must remain equal to the baseline year.

Physicians are capped at total savings from the baseline year and are not allowed to increase the number of patients from a Federal Health Care Program beneficiary.  

No. You are not able to reduce any products that exist prior to the Agreement

A Program Committee is formed with representatives of the hospital, the physicians and the Program Administrator.

Yes. Patients are to be notified, can review the entire Agreement and may opt out of participation in the program.

Savings are calculated separately by each identified opportunity.

Acquisition costs are used to calculate savings.

The revised statute specifies that there can be no decrease in “medically necessary” services.  Therefore, with all supplies still available and the quality monitors, there are appropriate safeguards to ensure that does not apply.

By the total identified opportunity identified at the beginning of the Agreement.

Through the Program Administrator based on the savings methodology.

Yes. All payors are included.

There is no risk to the hospital or the physicians.  Whatever is saved is shared.

Physician & Third-Party FAQs

Physicians must determine the clinical equality of the supplies based on best practice guidelines.  They attend quarterly meetings with the Program Committee.

Savings are identified overall, and the total program savings are distributed on a per capita basis to the participating physicians.

Yes. If a physician’s quality or severity changes significantly from the baseline, the physician can be terminated from the agreement.

Yes. A third-party is required to determine the savings and to conduct quarterly monitoring.

Program Administrators are paid on a monthly basis and their fees are removed from the total savings before it is split between the hospital and the physicians.

Fees are removed from the overall savings prior to distribution; therefore, both parties pay for the Program Administrator.

No. The Program Administrator must be a set fee paid monthly.

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