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Gainsharing: providing incentives for process improvement.

M E Hopkins1

  • 1Boulder Community Hospital, CO, USA.

Radiology Management
|March 3, 1996
PubMed
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Gainsharing programs link employee pay to operational performance improvements, fostering involvement. Boulder Community Hospital

Area of Science:

  • Healthcare Management
  • Organizational Behavior

Background:

  • Gainsharing incentivizes employees by linking financial rewards to operational improvements.
  • Successful implementation requires clear employee involvement and understandable bonus payout formulas.

Purpose of the Study:

  • To evaluate the implementation and early success of a gainsharing program at Boulder Community Hospital (BCH).
  • To assess the impact of employee involvement in designing and executing the gainsharing plan.

Main Methods:

  • Boulder Community Hospital (BCH) implemented the "Encore! Quality Share" gainsharing program in 1995.
  • A cross-level employee design team developed the plan, emphasizing team norms and consensus.
  • Key components included standardized cost measurement per patient discharge and quality feedback loops.

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Main Results:

  • The gainsharing program demonstrated early success with significant payouts in the first two quarters.
  • Employee involvement was facilitated through educational seminars and integration into training programs.
  • Discussions are underway to implement safeguards against potential complacency.

Conclusions:

  • The BCH gainsharing program, "Encore! Quality Share," shows promising early results.
  • Employee-driven design and clear performance metrics are crucial for gainsharing success.
  • Continuous evaluation and adaptation are necessary to sustain program effectiveness.