Abstract: The present invention incorporates medical knowledge into the processes and algorithms that combine inpatient quality outcomes, ambulatory quality measures and health insurers' financial data into actionable information that hospitals and physicians can use to improve the efficacies and efficiencies of their care. It then quantifies the financial net savings that predictably accrue as a result of the providers' improved medical outcomes. This information enables a hospital or health insurer to equitably share the net saving with the physicians and hospitals as incentives to continuously improve the quality of their patients' care and control costs.