Financial incentives for meeting budgets?

I've heard of many organizations who give bonuses to management for meeting standards regarding budget, patient satisfaction, etc. I think it's fairly common practice but don't know for sure.

I worked at a facility that incentivized managers to come in under budget for the year by offering a 15% annual bonus (based on salary). Those that developed processes to assure the cost-effectiveness of department operations were given additional percentages based on specific criteria. It was wonderful!!

Although the bonuses amounted to a whole pile of money, it still worked in our budget and helped the managers learn the importance of being frugal with the organization's dollars.

Not at the three facilities I have worked.

I am expecting my bonus this week. Our bonus is based on meeting the organizational goals which are different every year. Patient satisfaction, various budget issues, and HR were 2004 goals. I am not sure how much it will be yet but am excited to get it.

I'd never turn down even a tiny bonus!

Can someone please explain further how a middle level manager or upper level NURSE manager can get a financial bonus in a non-profit hospital??
What can you financially change?? Staff--FTEs, par levels, types/cost of equipment?
I understand pt satisfaction, personal goals, employee satisfaction, hosptial goals, etc