Which incentive mechanism can promote care coordination within hospital strategy?

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Incentive design that promotes care coordination ties rewards to collaborative improvements across care teams and processes. Gainsharing provides a shared financial reward when the hospital reduces costs and improves outcomes (like fewer readmissions or better care transitions), encouraging clinicians from different departments to work together rather than pursuing siloed goals. Equity incentives add a longer-term ownership stake, aligning individual motivation with the hospital’s strategic direction and helping retain leaders who drive coordinated care initiatives.

This combination directly targets coordinated, cross‑functional performance, unlike a pure production-based pay that rewards volume without encouraging teamwork; a plan with no incentives at all; or a flat salary with no metrics, which fails to motivate or measure coordinated behaviors.