Misaligned Incentives

A perfect example of one of the big issues with healthcare reform.

We all know that hospital readmissions is an issue.  We have been working with several clients to address this issue.

I called a few senior people in some hospital systems to talk about it.  I think one of their responses summarized it up nicely:

It’s not something we are focused on.  We still make positive contribution margin on these readmissions.

As many people have pointed out, misaligned incentives make it hard to improve the system.

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