profit sharing

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profit sharing,

arrangement by which employees receive, in addition to their wages, a share of the net profits of a business. The purpose is to give them an incentive to increase their output through enhanced morale, less wasteful use of materials, better care of equipment, and the like. Profit sharing does not imply participation by the workers in management. The employer determines the rate at which profits are shared; since the rate is fixed beforehand, profit sharing differs from the bonusbonus,
extra amount in money, bonds, or goods over what is normally due. The term is applied especially to payments to employees either for production in excess of the normal (wage incentive) or as a share of surplus profits.
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 system. Profit sharing plans have been in operation in France since 1842 but have not been widely adopted in the United States. The plan has been most successful in businesses where employees work without direct supervision or where it is limited to supervisory employees or lesser executives, e.g., branch managers and department managers in department stores.

profit sharing

[′präf·ət ‚sher·iŋ]
(industrial engineering)
Sharing of company profits with the employees.
References in periodicals archive ?
Although it is important to express that every dollar saved in supply chain costs goes immediately to the bottom line, it is also Important to express that savings can be applied to acquiring technology to build service lines, support goals to reduce hospital-acquired infections and support the medical staff incentives related to gainsharing.
Added Sean Hopkins, NJHA's senior vice president of federal relations and health economics, "Seeing the gainsharing model produce the 'triple aim' outcomes of better health and lower costs through coordinated care has been professionally rewarding.
Though the statute is intent-based, and thus requires the government to prove that a payment was made with knowledge to induce referrals, providers would still seek to minimize liability by fitting the gainsharing payments into an existing safe harbor or by requesting an advisory opinion from the OIG.
In 1999, in an effort to begin the process of improving hospital/physician dialogue and collaboration, the New Jersey Hospital Association (NJHA) approached the federal Healthcare Financing Administration (HCFA) with a proposal to start a gainsharing demonstration project.
The private payers involved in the gainsharing project--Arkansas Blue Cross Blue Shield and Arkansas QualChoice--will start their data col-lection in January 2013.
The New Jersey Hospital Association initially proposed a gainsharing demonstration project in 2004, but at that time, CMS did not have the statutory authority to waive gainsharing restrictions.
Unionized companies often start a gainsharing plan in the middle of a multi-year union contract.
Ammons and Rivenbark use case studies to illustrate the types of gainsharing and how they are used, along with the controversies and risks involved.
As a result, this whole new practice of Gainsharing began to replace profit sharing.
There would be the possibility for gainsharing among hospitals and physicians.
Updates from these government branches will be provided, as will discussion on topics such as the Medical Device User Fee and Modernization Act of 2002, hospital group purchasing organization reform and device contract gainsharing.
Gainsharing in public accounting: Working smarter and harder.