Modern healthcare contracting is shifting the responsibility for improving quality, enhancing community health and controlling the total cost of care for patient populations from payers to providers. Population-based contracting involves capitated risk taken across an entire population, such that any included services within the contract are paid for by the risk-bearing entity throughout the term of the agreement. Under such contracts, a risk-bearing entity, which may be a provider group, a hospital or another payer, administers the contract and assumes risk for contractually defined services. These contracts can be structured in various ways, from professional fee capitation to full global per member per month diagnosis-based risk. The entity contracting with the payer must have downstream network contracts to provide the care and facilities that it has agreed to provide. Population health is a very powerful model to reduce waste and costs. It requires a deep understanding of the nuances of such contracting and the appropriate infrastructure to manage both networks and risk. Cite this article: Bone Joint J 2017;99-B:1431–4

‘Big data’ is a term for data sets that are so large or complex that traditional data processing applications are inadequate. Billions of dollars have been spent on attempts to build predictive tools from large sets of poorly controlled healthcare metadata. Companies often sell reports at a physician or facility level based on various flawed data sources, and comparative websites of ‘publicly reported data’ purport to educate the public. Physicians should be aware of concerns and pitfalls seen in such data definitions, data clarity, data relevance, data sources and data cleaning when evaluating analytic reports from metadata in health care.

Cite this article: Bone Joint J 2017;99-B:1571–6.