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
the goal upon which their gainsharing
compensation is based.
Spurred on by gainsharing
, the entire organization evolves naturally into a customer-focused, profit-oriented operation.
A key assumption underlying his framing of this question is his belief that, if managed effectively, gainsharing
will be applicable to and successful in any business organization.
When properly implemented, gainsharing
integrates teamwork, communication, goal orientation and performance improvements into one system.
Those with the largest percentage gains in popularity have been gainsharing
(a form of large group incentives), followed by profit-sharing and gains in small group incentives (such as departmental).
The arguments have taken two distinct forms that followed disciplinary boundaries: behavioral arguments about employee participation and economic/sociological arguments about gainsharing
and the division of profits.