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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
#doi: 10.1097/01.EEM.0000423203.12683.02
CAP Today 9/99, p95

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