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Putting teeth into pay-for-performance programs.

D W Jones, M C Hauser

    Healthcare Financial Management : Journal of the Healthcare Financial Management Association
    |August 7, 1991
    PubMed
    Summary
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    Gain sharing, a variable compensation plan, rewards healthcare employees for financial performance, productivity, and quality. This approach is gaining traction as healthcare organizations seek to address industry concerns.

    Area of Science:

    • Healthcare Management
    • Organizational Economics
    • Human Resources in Healthcare

    Background:

    • Performance-based evaluation and salary systems are prevalent in healthcare organizations.
    • Rank-and-file variable compensation plans are not widely adopted by healthcare facilities.
    • Gain sharing presents a potential variable compensation model for the healthcare industry.

    Purpose of the Study:

    • To explore the potential of gain sharing as a variable compensation strategy in healthcare.
    • To highlight the alignment of gain sharing with key healthcare industry concerns.
    • To inform healthcare organizations about an alternative compensation approach.

    Main Methods:

    • This study is primarily a conceptual exploration and review of gain sharing principles.

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  • Analysis of existing performance-based systems in healthcare.
  • Examination of gain sharing's applicability to healthcare metrics.

    • Main Results:

    • Gain sharing rewards employees based on financial performance, productivity, and quality measures.
    • This compensation model addresses prominent concerns within the healthcare industry.
    • It offers a structured approach to variable pay for rank-and-file employees.

    Conclusions:

    • Gain sharing is a viable and increasingly relevant compensation strategy for healthcare organizations.
    • The model's focus on financial performance, productivity, and quality aligns with industry objectives.
    • Further adoption of gain sharing could enhance organizational performance and employee engagement in healthcare.