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.
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.