How are hospitals incentivized to prevent disease? I thought it would be the insurance companies who would do this, but they wouldn't be allowed to as it would also let them prescreen customers. Perhaps it could be insurance companies who pay hospitals for being good with disease prevention? There's an interesting interaction there.
Capitation of member lives is one mechanism that's been tried. That's the theory behind HMOs, though some (notably Kaiser) seem to be markedly more effective than others.
The story behind how Kaiser healthcare was founded (providing health services for workers on the Hoover Dam) is pretty interesting.
One of the primary ways (though not the only one) is by being part of an "Accountable Care Organization." These allow health systems to share in the savings they create for Medicare patients.
Comments
How are hospitals incentivized to prevent disease? I thought it would be the insurance companies who would do this, but they wouldn't be allowed to as it would also let them prescreen customers. Perhaps it could be insurance companies who pay hospitals for being good with disease prevention? There's an interesting interaction there.
Capitation of member lives is one mechanism that's been tried. That's the theory behind HMOs, though some (notably Kaiser) seem to be markedly more effective than others.
The story behind how Kaiser healthcare was founded (providing health services for workers on the Hoover Dam) is pretty interesting.
One of the primary ways (though not the only one) is by being part of an "Accountable Care Organization." These allow health systems to share in the savings they create for Medicare patients.
Money isnt the only motivator. Many doctors genuinely care about health and their patients. Plus, prevention can be a premium add on.