AHA Trustee Magazine “Two Paths to Savings” includes Gainsharing and Shared Savings

Share:

In the March 2015 edition of the American Hospital Association’s Trustee magazine, AMS VP Anthony Stanowski and I authored “Two Paths to Savings”.  The article reviews the relationship between shared savings programs (ACOs, Bundled Payment Programs, and Patient Centered Medical Homes) and gainsharing programs.  Four basic questions that trustees and hospital executives wrestle are examined:

  1. How do shared savings and gainsharing differ?
  2. Can hospitals participate in both?
  3. How are incentives distributed in each?
  4. How are the success requirements different?

The article includes two brief summary tables.  One evaluates elements of shared savings/gainsharing relative to incentive distribution, and the second looks at critical success factors for hospitals, physicians, and payers.

Both shared savings and gainsharing programs aim to increase health care value by lowering costs and improving patient outcomes and experience.  While they both allow for sharing of accountability for care, gainsharing focuses on cost savings as the basis for incentives, while shared savings allocates a portion of reduced payments from the insurers.  The article concludes that because cost control is required in both circumstances for providers to succeed, gainsharing can be an effective foundation on which hospitals can build to succeed in shared savings programs.

Leave a Reply