Incentive Pool Payments Sample Clauses

Incentive Pool Payments. 7.10.1 The Department will establish an incentive pool from which Contractor may earn payments based on its performance with respect to those quality metrics set forth in Attachment XI of this Agreement (P4P Metrics). To fund the pool, each month the Department shall withhold a portion of the contractual Capitation rate. The withheld amount will be one percent (1%) in the first measurement year, one and a half percent (1.5%) in the second measurement year and two percent (2%) in the third measurement year. Subsequent withheld amounts will be negotiated and agreed to by the Parties. The withheld amount will be combined with an additional bonus amount funded by the Department so that total funding of the incentive pool shall be equal to five percent (5%) of the Capitation rate. An equal portion of the incentive pool will be allocated to each P4P Metric. If Contractor reaches the target goal on a P4P Metric, Contractor will earn the percentage of the incentive pool assigned to that P4P Metric. Withholds of Contractor’s Capitation payment for the purposes of funding the incentive pool shall commence with the January 15, 2012 Capitation payment for the January 2012 service month. For purposes of measuring P4P Metrics, calendar year 2010 will be considered the initial baseline year and calendar year 2012 will be considered the initial measurement year.