In the sampling process, the objective was to obtain information on all organizations with gainsharing
experience in the United States and Canada, regardless of whether gainsharing
programs existed at the time of the survey.
This is not to say that gainsharing
should not be carried into other areas of the operation.
148) Unlike with the employment exception, the personal services exception often is not applied in situations where hospitals can bundle the physician's base salary and the incentive-based compensation received from a gainsharing
arrangement together to perform a fair market value analysis.
The theory behind gainsharing
is to align the payment incentives of the physicians with the hospital.
Yet other companies needing concessions from a union, like AAM, sometimes can substitute a gainsharing
plan and the bonuses employees earn under it for the concessions needed in guaranteed pay-rates.
The common result of most Gainsharing
programs, says a General Accounting Office report, is often a 22 percent decrease in waste, spoilage, and customer returns; a consistent boost in productivity; and a 17 percent increase in net profit for the year.
In 1999, the HHS Office of Inspector General issued a special advisory bulletin saying that the civil monetary penalty provision of the Social Security Act prohibits most gainsharing
combines features of 360-degree evaluation, open-book management, and, of course, profit sharing.
Spurred on by gainsharing
, the entire organization evolves naturally into a customer-focused, profit-oriented operation.
shares expense savings based on an improvement in the ratio of expenses to volume compared to the previous year.
helped TNC focus on quality principles.
and Power: Lessons from Six Scanlon Plans.