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Home / News & IndustryManaged Care Insight and Analysis
Updated: June 15, 2010
Gainsharing Gaining Favor At West Virginia Hospital

CAMC Memorial Hospital, home to the nation’s fourth largest cardiology program, expected to save $2 million in 2009 through its participation in the Medicare Hospital Gainsharing Demonstration, overseen by the Centers for Medicare and Medicaid Services (CMS).

The Charleston, W.Va., hospital shared 50 percent of that money with its cardiovascular surgeons, vascular surgeons, and electrophysiologists who are making those savings possible.

Although the gainsharing concept is thought to hold great potential for increasing healthcare efficiency. It is also designed to prove that aligning the interests of referring physicians and hospitals can also improve quality.

At the end of each quarter, CAMC analyzes its costs for the cardiovascular diagnosis-related groups that are part of the demonstration project. If costs increase relative to the baseline, no gainsharing payments are made. If quality is maintained or improved, costs decrease relative to the baseline, and the savings are attributed to specific cost control initiatives then 50 percent of the savings are shared with physicians.

"If quality goes down in the demonstration project, then there are no payments to the physicians." said Bill Adams, CAMC Memorial’s administrator.

For more information on CAMC Memorial Hospital, visit

  This article was taken from:
Pay-For-Performance Reporter

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