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Gainsharing can control costs without hurting quality

Quality Improvement Monitor, May 16, 2008

Rewarding physicians who reduce hospital spending with financial bonuses controls costs without compromising quality, according to a new study.

The study, done by researchers from Arizona State University, found that gainsharing lowered hospital costs by 7.4%, or $315 per patient, HealthDay News reported.

"We found no evidence that gainsharing prompted physicians to avoid patients with existing health problems or pick the healthiest patients," study author Jonathon Ketcham, an assistant professor at the university's School of Health Management and Policy, said in prepared statement to HealthDay.

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