Value-Based Care Glossary
Plain-English definitions for the measures, models, and actions used across this platform.
Showing 24 of 24 terms
Value-Based Care
6Value-Based Care (VBC)
Payment tied to quality and total cost outcomes rather than volume of services.
Contracts reward keeping an attributed population healthy and out of the hospital. Performance is measured on three axes: quality, risk accuracy, and total cost of care.
Attribution
The rule that assigns a patient to a provider or organization for a contract.
Usually based on plurality of primary care visits over a lookback window. Attribution decides whose numbers a patient's cost and quality land in — so attribution churn moves every metric.
Shared Savings
Also known as: Shared Risk
The share of spend below benchmark that the organization keeps.
Savings = benchmark spend − actual spend, multiplied by a contractual sharing rate and often gated by a quality score. Upside-only contracts have no downside; two-sided contracts also share losses.
Example · $4.2M below benchmark × 60% sharing rate × 88% quality gate = $2.22M earned.
Benchmark
The spending target a contract measures actual cost against.
Set from historical spend, regional trend, and risk score. A rising RAF raises the benchmark, which is why risk accuracy and cost performance must be read together.
MSSP / ACO
Medicare Shared Savings Program — an accountable care organization contract.
Groups of providers accountable for the quality and total cost of an attributed Medicare population. Tracks differ by how much upside and downside risk is taken.
Rising Risk
Members whose risk score is climbing but who have not yet had an acute event.
The segment with the highest prevention return — cost is still avoidable. Contrast with high-cost members, where much of the spend is already committed.
Quality & Stars
5Star Rating
CMS's 1–5 rating of a Medicare Advantage plan's quality.
Drives plan bonus payments and shared-savings quality gates. Composed of clinical measures, patient experience, and administrative measures.
Quality Composite
A weighted roll-up of all contracted quality measures.
Determines what share of the earned savings is actually paid. A high-savings, low-quality year can still pay very little.
Early Indicator
An internally computed measure result available before official payer data.
CMS and payer measure files run roughly five months behind. Early indicators from EHR and claims data let teams act inside the measurement year instead of after it closes.
AWV (Annual Wellness Visit)
The yearly Medicare visit that anchors both quality and risk capture.
The single highest-leverage encounter in VBC: it closes preventive quality measures and creates the face-to-face needed to recapture chronic conditions. Scheduling AWVs early in the year is the most repeated recommendation in this platform.
Care Gap
A required quality service a patient has not yet received.
Screenings, labs, immunizations, and follow-ups tied to contracted measures. Distinct from a risk opportunity, which is about documentation rather than a service.
Risk Adjustment
6HCC
Hierarchical Condition Category — the grouping CMS uses to price clinical risk.
Chronic conditions map to HCCs, each carrying a coefficient. HCCs must be documented and coded every calendar year; last year's diagnosis does not carry forward.
RAF Score
Risk Adjustment Factor — the expected relative cost of a member.
Built from demographics plus active HCCs. A RAF of 1.0 is an average beneficiary. Under-coding depresses the benchmark and understates the population's real acuity.
Actionable Opportunity
A documented, evidence-backed chance to record a patient's true clinical risk.
Preferred to the word 'gap'. Two kinds: recapture (an HCC coded in a prior year but not yet this year) and suspecting (evidence in labs, meds, or notes suggests an undocumented condition).
Recapture
Re-documenting a chronic condition coded in a previous year.
The highest-confidence opportunity type — the condition is chronic and the prior documentation exists. Requires a face-to-face encounter in the current calendar year.
Suspecting
A likely undocumented condition inferred from clinical evidence.
Flagged from labs, medications, imaging, or note text. Always requires clinician confirmation — a suspect is a prompt for review, never a code to submit.
RADV Audit
Risk Adjustment Data Validation — CMS audit of submitted diagnoses.
Codes must be supported by a signed, dated encounter note. Unsupported codes are recouped with penalties, which is why documentation quality matters as much as capture rate.
Cost & Utilization
6PMPM
Per member per month — total cost divided by member months.
The standard normalized unit for comparing cost across populations of different sizes and enrollment periods. Nearly every cost view on this site is expressed in PMPM.
Medical Loss Ratio (MLR)
Share of premium spent on medical care.
Medical costs ÷ premium revenue. Under a risk contract, an MLR under the target is the margin; over the target is a loss.
Admits per 1,000
Also known as: Admits/K
Annualized inpatient admissions per 1,000 attributed members.
The single most-watched utilization metric in VBC — inpatient is the largest cost category and the one most responsive to primary care and care management.
Readmission Rate
Share of discharges followed by an unplanned readmission within 30 days.
Both a quality measure and a cost driver. Timely transitional care contact after discharge is the most reliable lever.
ADT Feed
Real-time admit, discharge, and transfer notifications from an HIE.
Lets care teams act within hours of a hospital event instead of learning about it months later in a claim. Drives the transitional care worklist.
TCM / Transitional Care Management
Also known as: TOC, Transition of Care
Structured follow-up after a hospital or SNF discharge.
Requires contact within 48 hours and a face-to-face visit within 7 or 14 days. Counts for quality credit and cuts readmissions.
Operations & KPIs
1Waterfall (Bridge)
The standard chart for explaining movement between two values.
Starts at the prior value, adds and subtracts named drivers, and lands on the current value. Adopted across this platform as the default way to answer 'what changed and why'.