RISK SHARE ARRANGEMENTS Clause Samples
A Risk Share Arrangements clause defines how parties to an agreement will distribute or share financial risks associated with the contract. Typically, this clause outlines specific scenarios or thresholds where costs, losses, or benefits are divided between the parties, such as sharing unexpected expenses or savings resulting from project outcomes. Its core practical function is to allocate risk in a balanced manner, incentivizing both parties to manage risks effectively and providing a clear framework for handling unforeseen events.
RISK SHARE ARRANGEMENTS. 8.1 The areas of risk are under or overspending of budgets within Better Care Fund budget lines and exceeding affordable levels of care outside the Better Care Fund.
8.2 As part of the initial development of the BCF pooled budget a number of risks were identified where the individual schemes would potentially result in additional demand for services and/or additional costs, or the required efficiencies and reductions do not materialise to the extent planned. The pooled budget in total includes an amount of £0.5m as a risk pool. In applying the risk pool funding it is important to have a jointly agreed approach.
8.3 It is proposed that the BCF Executive Group is the forum where decisions on the application of risk pool funding for either pool is made.
8.4 Risk is attributable pro rata to the proportion of that scheme commissioned by each partner organisation. This is to reflect where the levers for change and control sit. Similarly, where the scheme is joint and there is one lead commissioner, the risk should be shared pro-rata to the proportion of each partners contribution, subject to the maximum level of funding each partner contributes to the scheme unless agreed by the Chief Finance Officer of the SYICB (Rotherham Place) and the Strategic Director of Finance and Customer Services of the Council prior to any additional expenditure being incurred (paragraph 6.3).
RISK SHARE ARRANGEMENTS. The Parties have agreed risk share arrangements which provide for financial risks arising within the commissioning of services from the Pooled Fund and an Aligned Fund; and the financial risk to the pool arising from any payment for performance element of the Better Care Fund.
RISK SHARE ARRANGEMENTS. In view of the financial settlement for 2012/13 a revised arrangement is in place which sees Torbay Council assume 100% responsibility of the risk for both in-house LD and independent sector commissioned social care expenditure. TCT assumes the risk for Operations only. The figures quoted in 4.1 above exclude any pressures associated with ordinary residency clients as well as any further inflationary settlements over and above those already included in this agreement.
RISK SHARE ARRANGEMENTS. The Partners have agreed risk share arrangements as set out in Schedule 3, which provide for financial risks arising within the commissioning of services from the pooled funds.
RISK SHARE ARRANGEMENTS. 15.1. This Agreement is based on the following estimates for PBS and RPBS prescription volumes: 2005-0611 2006-0711 2007-0811 2008-0911 2009-1011 PBS & RPBS Prescription Volumes (m)12 186.208 199.416 209.282 218.847 228.333 15.2. Clause 15.1 is amended by replacing the PBS and RPBS Prescription Volumes for the years 2006-07 to 2009-10 by the following Prescription Volumes for those years: 2006-0713 2007-0813 2008-0913 2009-1013 PBS & RPBS Prescription Volumes (m)14 196.237 206.907 216.545 226.050
RISK SHARE ARRANGEMENTS.
12.1 It is agreed by the Parties that the enacting of any risk share agreement leads to improved financial sustainability for the locality in 2024/25 or in subsequent financial years and any resulting benefits are to be realised within the (Tameside) locality only.
RISK SHARE ARRANGEMENTS. The risk sharing agreement continues and Torbay council assumes responsibility for both in-house LD and independent sector commissioned social care expenditure. The Trust assumes the risk for operations. Risk sharing arrangements for beyond 2013/14 will be discussed at a later date. There are a number of risks to the Council and the Trust in delivery of the commissioning agreement. These include: Movement of ordinary residence can create in year pressures and this will be monitored closely through social care programme board The requirements of this commissioning agreement are the further changes and savings to back office and assessment processes. Capacity in zone teams may impact on the pace of delivery. This is mitigated through assurance from the trust that operational services at the front end can be delivered in a different way. Council is setting (as separate decision) a 2 year set of fees within a new banding structure for residential care which may be open to challenge. This is mitigated through a consultation process with providers throughout 2012/ 13. Concern may be raised in response to implementation of the programmes of work outlined in this agreement which may affect the pace of delivery. This is mitigated through the close involvement of, and engagement with, individuals and communities. The Trust may be acquired by another NHS Foundation Trust and this could result in distraction from delivery of this agreement. This is mitigated through close working between senior officers and the NHS; the Mayor and Councillors; NHS chairs and board members.
RISK SHARE ARRANGEMENTS. The risk sharing agreement continues and Torbay council assumes responsibility for both in-house LD and independent sector commissioned social care expenditure. The Trust assumes the risk for operations. Risk sharing arrangements for beyond 2013-14 will be discussed at a later date. There are a number of risks to the Council and the Trust in delivery of the commissioning agreement. These include: Movement of ordinary residence can create in year pressures and this will be monitored closely through the Social Care Programme Board (SCPB) The requirements of this commissioning agreement are the further changes and savings to back office and assessment processes. Capacity in zone teams may impact on the pace of delivery. This is mitigated through assurance from the Trust that operational services at the front end can be delivered in a different way. Council is setting (as separate decision) a 2 year set of fees within a new banding structure for residential care which may be open to challenge. This is mitigated through a consultation process with providers throughout 2012/ 13. Concern may be raised in response to implementation of the programmes of work outlined in this agreement which may affect the pace of delivery. This is mitigated through the close involvement of, and engagement with, individuals and communities. The Trust may be acquired by another NHS Foundation Trust and this could result in distraction from delivery of this agreement. This is mitigated through close working between senior officers and the NHS, the Mayor and Councillors, NHS chairs and Board Members. If anticipated cost pressures do not materialise any residual S256 monies shall be used to support service transformation schemes and spend to save initiatives which will secure greater savings for 2014-15 and beyond.
RISK SHARE ARRANGEMENTS.
12.1 In 2020/21, the Tameside & Glossop CCG Governing Body and Council Executive Cabinet agreed a two year risk share arrangement up to a maximum of £10 million with no more than £5 million in any one year. Any risk share arrangement enacted will have amounts repayable over the following two consecutive financial years for the benefit of the (Tameside) locality only. This period covers the financial years 2022/23 and 2023/24.
12.2 In acknowledgement of the terms of the risk share agreement outlined in 12.1 and enacted at 31 March 2022, a reciprocal increased contribution will be required payable to the Pooled Fund by 31 March 2024.
12.3 It is agreed by the Parties that, if the enacting of the risk share agreement leads to improved financial sustainability for the locality in 2023/24 or in subsequent financial years, then any resulting benefits are to be realised within the (Tameside) locality only.