Contract Management · Contract Setup · Step 1 of 4
Contract Type
Classify the contract using the HCP-LAN Alternative Payment Model framework. The category determines available payment mechanics and downstream configuration.
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Select a payment category from the HCP-LAN Alternative Payment Model Framework. Your selection stores the archetype in state and drives downstream configuration requirements. Enable Hybrid mode to blend two adjacent categories.
Hybrid model selection — blend two adjacent HCP-LAN categories for complex contracting arrangements
Category 1
Fee-for-Service, No Link to Value
Model typeVolume-based FFS
MechanismStandard claims reimbursement; payment per service unit regardless of quality or outcome
Risk directionPurchaser bears all risk · Provider bears no financial risk · No incentive to improve value
ExampleStandard MOD FFS claims for all clinical encounters; no incentive withholds or quality adjustments
Category 2A
FFS + Foundation Payments for Infrastructure
Model typeFFS + Care Management Supplement
MechanismPer-patient infrastructure payments on top of FFS base; rewards capacity-building, not performance
Risk directionMinimal · Purchaser holds clinical risk; provider earns supplement for infrastructure investment
ExampleSAR 120/month care management fee per complex T2DM patient at PSMMC Riyadh to fund diabetes care navigator
Category 2B
FFS + Quality / Efficiency Bonuses & Penalties
Model typePay-for-Performance
MechanismFFS with a quality withhold (3–5%) returned on metric attainment; bonuses for exceeding stretch goals
Risk directionLow–moderate · Downside via pay-at-risk withhold; upside via quality bonus above FFS base
Example3% quality withhold across MOD network claims — returned on HbA1c ≤7% and PHQ-9 remission targets
Category 3A
APM Built on FFS — Shared Savings (Upside Only)
Model typeOne-Sided Shared Savings
MechanismFFS claims baseline + provider retains a percentage of total-cost savings if quality thresholds met
Risk directionModerate upside · No financial downside · Quality gates mandatory for savings eligibility
ExampleT2DM / Depression shared savings: MOD Network earns 40% of savings above 2% minimum savings rate
Category 3B
APM Built on FFS — Shared Savings + Risk (Two-Sided)
Model typeTwo-Sided Risk / Bundled Payment
MechanismFFS + provider shares savings AND losses; episode-based bundles with fixed prices and risk corridors
Risk directionTwo-sided · Provider earns upside and absorbs downside within corridor caps
ExampleHip & Knee OA 90-day surgical bundle at KFMC / NRH: ±10% corridor, two-sided risk activates Year 2
Category 4
Population-Based Payment
Model typeCapitation / Global Budget
MechanismAnnual PMPM rate or network-level global budget; FFS billing eliminated or minimized
Risk directionHigh · Provider bears utilisation and cost risk for the full attributed population
ExampleAnnual SAR 2.4B global budget for all 5 MOD facilities — 184,500 attributed lives, full risk transfer