Definition An incentive arrangement in which a payer rewards a payee for reducing the payee’s financial outlay.
Gainsharing in which hospitals paid physicians a percentage of the savings generated through the physicians’ cost-cutting efforts was deemed illegal–per the OIG* of the HHS** in the 1990s. In 2009-ish, Medicare began testing gainsharing; it is unknown if it will be implemented as a cost-saving tool.
*Office of the Inspector General **Department of Health and Human Services.
References Emergency Medicine News:15 November 2012 – Volume 34, – Issue 11B
CAP Today 9/99, p95