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Gainsharing and Shared Savings Continue to Spark Interest

Karen Minich-Pourshadi, for HealthLeaders Media, June 11, 2012

Berman says gainsharing is a good place for healthcare organizations to begin. "Gainsharing is shared savings, but there are certain regions where the legal community is very nervous about gainsharing. But gainsharing can be simpler to get off the ground with a group [of physicians] and help spark collaboration. It can be a good starting point to move physicians toward the organization's big picture," she says.

When it comes to cost reduction efforts, gainsharing and shared savings models both can work well. For hospitals or health systems still striving to develop better physician collaboration, gainsharing can be a way to dip the organization's metaphoric toe into the waters to see how much work might be required before establishing an accountable care organization and shared savings model. Regardless of what the Supreme Court rules on PPACA, financial leaders will continue to need cost reduction approaches.


Karen Minich-Pourshadi is a Senior Editor with HealthLeaders Media.
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1 comments on "Gainsharing and Shared Savings Continue to Spark Interest"


Michael Cylkowski (6/11/2012 at 8:14 PM)
Gainsharing has a one or two year life before physicians lose interest, depending on how aggressive the first year savings were. By the third year, the physicians have no benefit, monetary or otherwise. They are then using the supplies they would never have opted for if they hadn't fallen for the scam in the first year. Gainsharing is a misnomer; the gain from year three on is entirely for the healthcare institution. And, by the way, outcomes is not a metric in gainsharing.