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EXPANSION OF GAINSHARING PROGRAM

The following resolution was adopted:

• WHEREAS, the Medical Center's Gainsharing Plan was designed prior to the beginning of the current fiscal year when revenue estimates were very modest; and
• WHEREAS, The Board of Visitors approved at the February 7, 1997 meeting a projected operating margin in excess of $20,000,000; and
• WHEREAS, the Medical Center proposes expanding the revenue on which the Gainsharing Plan is based to a maximum of $20,000,000, and the maximum payment to employees covered under the current plan to 4.0 percent of salary based on patient satisfaction and employee performance; and
• WHEREAS, the clinical faculty of the School of Medicine were not included in the initial plan, it is proposed they be included as participants in the Gainsharing Plan with maximum payments of 4.0 percent of base salary; and
• WHEREAS, the Medical Center recommends approval of the expansion of the Gainsharing Plan, and the Health Affairs Committee of The Board of Visitors has heard and recommends approval of the proposed plan;
• RESOLVED that the expanded Medical Center Gainsharing Plan is approved
  Gainsharing Program
  UVa Medical Center
  Fiscal Year 1996-97

Gainsharing: A way to provide a financial incentive to employees if the Medical Center can meet predetermined targets for patient satisfaction (measured by Quality Index) and financial performance (measured by Margin).

Eligibility: All Medical Center employees (except wage and housestaff) and School of Medicine Clinical Faculty who are on the payroll June 30, 1997.

Margin: Operating revenue minus operating expenses

Quality Index: A standard index of the ability to deliver quality measured by patient satisfaction surveys based on an average of quarterly adult and pediatric inpatient surveys conducted continually by Health Care Research Services of Columbus, Ohio.

Gainsharing Increase: A one-time, lump sum payment provided in August of 1997 based on the Medical Center's performance for fiscal year 1997. The Gainsharing Increase will be determined by applying the appropriate percentage from the table below to each employee's base salary. For those joining the Medical Center during the year, the payments will be prorated to reflect the period of time worked. These payments will not be included in the base salary for the next year.

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