gainsharing


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gainsharing

a PAY system where a proportion of employees' pay is linked to gains in productivity or reductions in costs. Its benefits are thought to include greater acceptance of changes in technology and work methods, more information sharing, more effective teamwork and greater personal effort. It can be used in organizations where profit-sharing schemes are inappropriate or impossible e.g. not-for-profit and public service organizations.

Two common forms of gainsharing are the Scanlon Plan where a portion of wages is based on movements in the ratio of the total wages bill to the total value of sales, and the Rucker Plan where wages are related to movements in the ratio of the total wages bill to total VALUE ADDED. The former provides an incentive to maximize saleable output whilst the latter encourages cost reduction.

References in periodicals archive ?
For this article, I've broken gainsharing down to three primary areas of production: platemaking, pressroom and distribution.
Though the statute is intent-based, and thus requires the government to prove that a payment was made with knowledge to induce referrals, providers would still seek to minimize liability by fitting the gainsharing payments into an existing safe harbor or by requesting an advisory opinion from the OIG.
In 1999, in an effort to begin the process of improving hospital/physician dialogue and collaboration, the New Jersey Hospital Association (NJHA) approached the federal Healthcare Financing Administration (HCFA) with a proposal to start a gainsharing demonstration project.
The private payers involved in the gainsharing project--Arkansas Blue Cross Blue Shield and Arkansas QualChoice--will start their data col-lection in January 2013.
The New Jersey Hospital Association initially proposed a gainsharing demonstration project in 2004, but at that time, CMS did not have the statutory authority to waive gainsharing restrictions.
who succeed with measurable clinical quality and efficiency [cost containment] improvements." (1) Of course the threshold that physicians must meet to be eligible for gainsharing bonuses can easily be manipulated and adjusted by a hospital-dominated PHO so as to favor the hospital, while simultaneously limiting the number of physicians who qualify for a gainsharing bonus.
Unionized companies often start a gainsharing plan in the middle of a multi-year union contract.
As a result, this whole new practice of Gainsharing began to replace profit sharing.
There would be the possibility for gainsharing among hospitals and physicians.
Leahey said the association would continue to lobby for GPO reform, in addition to its advocacy efforts to limit the negative effects of device contract gainsharing programs currently being explored by the Centers for Medicare & Medicaid Services (CMS).
McCarty Thornton, said during an audioconference on gainsharing sponsored by the Integrated Healthcare Association.
Workers do not receive piece-related bonuses, but all are included in a gainsharing program, and all are eligible for company-paid training and education.