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Gainsharing
"Gainsharing" is an arrangement under which a hospital enters into a formal agreement with physicians for the purpose of implementing cost reductions. Under the arrangement, the hospital provides physicians with a percentage share of any reduction in the hospital's costs for patient care attributable to the physicians' efforts. One version of gainsharing that is currently being aggressively marketed to hospitals generates savings based on achieving targeted reductions in the use of specific devices and supplies, as well as economies achieved by physicians’ use of specific product brands on which a lower price has been negotiated by the hospital. These types of arrangements may have significant impact on patient access to the most appropriate technologies and medical technology innovation.
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