Gainsharing

At its simplest definition, gainsharing is a business strategy designed to increase an organization’s profitability by motivating employees to improve their performance in return for a financial share in the gain.

In the healthcare environment, gainsharing is an umbrella term used to describe all alignment or value enhancement models such as shared savings, a program that is designed to drive in quality for patients, while driving out unnecessary cost. It allows hospitals and physicians to collaborate and share these cost savings for providing quality and efficiency improvements.