Business Case Studies & Business Publications

Incentives in the Healthcare System

Sisir Debnath, Tar...

Technical Note

Incentives in the Healthcare System

Sisir Debnath; Tarun Jain; Dibya Deepta Mishra

ISB127 | Published January 25, 2019 | 10 pages Technical Note

Collection: Indian School of Business

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Learning Objectives

This case study illustrates various incentives in the healthcare system using recent research in economics. Healthcare is important but it is difficult to objectively measure it from the perspective of providers, patients and third parties. Hence, incentives are used to motivate behavior in both providers and patients. The design of incentives is an enduring challenge and the case study tries to motivate managers to think through this problem in more detail.

This case could be taught in courses which introduce incentives in an healthcare context. It could be used to provide examples of how managerial economics could be applied to analyze and drive behavior.