The Stead Health Group, Inc. - Gainsharing Savings from Negotiated Leverage

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The Stead Health Group has expertise in Health Care Communication Transformations, Operations Improvement, Strategic Planning and Positioning, Financial Analysis and Turnaround, Program and Service Line Development, Facility Planning and Development. We apply strategy, customized to each client, resulting in tangible, bottom-line financial improvements.

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The percent of Americans without health insurance hit 15.9%, or roughly 46.6 million people, in 2005, up from 15.6% of the population in 2004, or about 45.3 million people, according to the Census Bureau.

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Gainsharing Savings from Negotiated Leverage

According to a study by Arizona State Univesity, gainsharing programs tend to generate savings by maxiimizing the negotiating leverage derived from physician participation. A review of six gainsharing partnerships that were approved by the HHS's Office of the Inspector General (OIG), found that the agreements prompted physicians to speak and negotiate directly with vendors for lower device costs, but did not cause behavioral changes such as limiting the wastage of disposalbe products. In order to realize sustainable savings, gainsharing must address behavioral changes in physicians that reduced per-procedure cost.

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