Benchmarks & Gainshare

Published: 14 Feb 2013 Average Rating: unrated Print

In an interesting example of the growing use of gainshare arrangements, the US courts have given clearance to an initiative covering more than 100 hospitals in New York.

The legal review was based on concerns that the proposed gainshare program might prove anti-competitive and to address these there is a high level of transparency in the overall process. The gainshare applies to physicians and awards will be based on their efficiency and effectiveness in the use of resources, both relative to others and to their own performance over time.

I find the program interesting because it demonstrates the power of technology in allowing us to think in new ways about undertaking benchmarks and measuring performance. As companies seek better ways to determine the relative value being provided by their internal and external providers, i believe we will see increased use of programs like this. An interesting question is who will sit behind their development – for example, industry bodies or associations, software companies, analysts, major consultancies, or a new breed of service providers focused on supplying the information that drives continuous improvement?

And for suppliers, what exactly does this trend mean in terms not only of rewards, but also with regard to their performance obligations and the customer's termination rights?

Comment or read more of Tim's Blog


Related Discussions

Please sign in or register to post on this forum
2020-02-28 11:26:47

Visualisation of the KPI section of a Contract

During our current contract one of the main issues that we encounter is confusion over the interpretation of KPI reporting and the consequences of any failings. We are...
Replies: 1

The Bank of Nova Scotia
2020-01-06 14:10:40

Defining KPIs and Creating Dashboards

Hi All, I am a fresh member of the portal. Looking for some insights in regards to defining KPIs. We are a team of 3 Contract Managers and our manager has asked us to ...
Replies: 2

Saudi Electric Company
2019-11-11 10:09:34

Contractors Performance Criteria

Dear All, regarding the Contractors Performance Criteria is there any recommendations or benchmark thanks Hussein
Replies: 1

PRS for Music
2019-10-28 12:12:30

Bench marking a service

Hi All Is there any standard in terms of stakeholder satisfaction in IACCM contract Management? We have sent out surveys (which our stakeholders had input into rega...
Replies: 2
2019-07-28 06:49:22


For Agreement between the Parties of differnet origin , the aurgument starts up on Jurisdiction and governing law for the AGreement. while both the Parties are interes...
Replies: 3

Kainga Ora-Homes and Communities
2019-06-26 23:26:16

Balanced scorecard

We are in the process to implement a Procurement, Contracts Management and Supplier Performance Management System by implementing four Oracle modules that will support...
Replies: 1

2019-06-10 18:07:51

Effect terms and conditions have on the value of any given

In regards to commercial contracting what are the top 5 language terms and conditions that will effect the margin and or value of a deal?
Older entries »
Replies: 2