A dozen hospitals in New Jersey and their affiliated physicians are participating in the Physician Hospital Collaboration Demonstration, a Medicare project to evaluate a program aimed at reducing health-care costs and improving quality of care.

The program, called gainsharing, is designed to encourage doctors and hospitals to work together to provide the most efficient patient care. Under gainsharing, physicians may share a portion of the savings realized by working with the hospitals to improve efficiency.

“This is a bold test to see if we can redisgn the failed system of the past and replace it with strategies that keep health care affordable while making it better and safer for patients,” said Betsy Ryan, President and CEO of the New Jersey Hospital Association.

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The federal Centers for Medicare and Medicaid will monitor and evaluate the program.