This is not to say that
gainsharing should not be carried into other areas of the operation.
Perhaps the most comprehensive protection offered by the Stark law as it relates to
gainsharing is the exception for bona fide employment relationships.
The Medicare Modernization Act of 2008 gave CMS the authority to conduct limited
gainsharing demonstrations under Section 646.
(252) DRA 5007 Medicare Hospital
Gainsharing Demonstration, CMS.GOV, 1, http://www.cms.gov/DemoProjectsEvalRpts/downloads/DRA5007_Solicitation.pdf (last visited Nov.
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.
Some companies, on the other hand, drag their heels on
Gainsharing mainly because they are satisfied with their current, mediocre performance.
In the long run,
gainsharing approaches that can save money without impacting patient care are likely take hold, he said, but first hospitals need clarification from Congress, the Health and Human Services secretary, and the Office of Inspector General about what arrangements are allowed.
The latter comment refers to the
gainsharing, team-based incentive program Montana implemented.
Gainsharing shares expense savings based on an improvement in the ratio of expenses to volume compared to the previous year.
Farrell of Foley & Lardner in Tampa recently presented "Physician
Gainsharing -- Past and Future" at the 2001 Health Care Industry Conference in Greensboro, North Carolina.
Moreover, the demand for mutuality would argue for sharing any gains produced by the team concept
Gainsharing based on measurable performance outcomes might also provide a powerful incentive to improve productivity, as might profit sharing.
It is well known that many winners of the Malcolm Baldrige National Quality Award, such as Cadillac and Federal Express, use profit sharing and
gainsharing plans in support of their quality programs.
