Hospitals are under constant pressure to manage costs while at the same time providing the best possible care. One approach to managing costs is through the use of so-called gainsharing arrangements. As described by the Centers for Medicare & Medicaid Services ("CMS"), these arrangements "seek to align physician economic incentives with those of hospitals by offering physicians a share of the hospitals' variable cost savings attributable to the physicians' efforts in controlling the costs of providing patient care."
In this article, published in January 2009 in HFMA Massachusetts-Rhode Island Chapter, Mass Media (Volume XXXVI Issue 2), Mintz Levin attorneys Garrett G. Gillespie and Brian P. Dunphy explain gainsharing arrangements; the Office of Inspector General guidance issued to date concerning gainsharing; and the CMS's proposed exception.
Click here to read the full article.