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The objectives of this study were first to inspect the background information of an incentive pay system in hospitals, which provide specialized services for the public, the current status of hospitals with the system, as well as effects produced by introducing it, and then to come up with measures to invigorate the system. According to the findings of a survey, a total of 123 out of 150 hospitals responded that they applied the system to their HR management, some fully or some partially, which accounts for 82.0 percent. This study suggested that the following strategies to invigorate the incentive pay system: having a clear objective when adopting the system; concerted performance targets; practical yet worth challenging business objectives; transparent information disclosure; and establishing a confidence-building system between labor and management. Mutual trust between labor and capital should be a key factor for the successful implementation of the incentive pay system.