Physician Payment and Reimbursement

Ask the Experts: CJR Physician Gain Sharing Agreements

April 12, 2018 9:37 am

We are a full-service hospital but primarily focus on elective orthopedic and spinal procedures. In 2017, we were recognized by the Comprehensive Care for Joint Replacement (CJR) program and awarded with funds for the prior year’s performance. We did not have a formalized agreement in place with our physicians prior to the launch of the program and were therefore not allowed to share these funds. We’ve researched the program and the requirements of how to design the gain sharing agreement, based on quality metrics versus volume, etc., but can’t seem to locate a template for an approved agreement. Are boilerplate agreement templates available or should agreements be created from scratch?


Answer 1: My recommendation is to create something that addresses each physician practice. Our experience has been that boilerplates create more problems than solutions.

This question was answered by: David A. Williams, FHFMA, CPA, partner, Horne LLP, and a member of HFMA’s Mississippi Chapter.

Answer 2: This agreement has aspects of gainsharing that may be helpful.

See related tool: Management Services Performance Improvement Agreement Between Hospital and Physician Group 

This question was answered by: Curtis H. Bernstein, CHFP, CPA/ABV, ASA, CVA, principal, Pinnacle Healthcare Consulting, and a member of HFMA’s Colorado Chapter.

What do you think? Please share your thoughts on this question in the comments section below.  

The information provided through the Forum’s Ask the Expert service does not constitute legal advice, even when the advice is provided by lawyers. You need to obtain your own legal counsel for legal advice, and consider the laws and regulations that govern your state. The content and opinions expressed are those of the Forum experts, and not that of their employers or of HFMA. HFMA does not endorse the material or warrant or guarantee its accuracy. The responses are based only on the specific facts or circumstances provided. Forum experts cannot be held liable for outcomes related to any information provided. 

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