Which type of risk involves placing a portion of payments at risk of loss if quality objectives are not met?

The scenario described pertains to a two-sided risk model, which is often utilized in healthcare payment systems to incentivize quality and efficiency. In this model, a portion of the payment is at risk, contingent upon meeting specified quality objectives. If the healthcare provider fails to meet these quality benchmarks, they face financial penalties or reductions in payment.

Two-sided risk encourages providers to improve the quality of care they deliver since their income is directly connected to their performance. This dynamic not only promotes better patient outcomes but also aligns financial incentives with the overall goals of the healthcare system, which include increasing value and reducing unnecessary costs.

In contrast, one-sided risk involves a scenario where providers may benefit from positive outcomes (like cost savings) without facing penalties for poor performance. General risk doesn't specifically pertain to the structured payment models seen in healthcare, and minimal risk implies a very low level of financial exposure, which does not encourage significant changes in behavior to meet quality objectives. Thus, the structure of two-sided risk effectively emphasizes the importance of quality in healthcare delivery while holding providers accountable for their performance.