Originally Published MX January/February 2006

BUSINESS NEWS

Aware of the brewing controversy over gainsharing, the U.S. Department of Health and Human Services Office of Inspector General (OIG) continues to emphasize the need for limited implementation of the practice. Testifying at an October hearing on gainsharing, OIG's chief counsel, Lewis Morris, said that the office has been "historically wary" of gainsharing arrangements due to their potential to violate federal antikickback statutes.

Gainsharing arrangements typically provide financial incentives to doctors who agree to use preapproved medical devices, equipment, and supplies that have been standardized by hospitals to control costs through volume buying.