The healthcare industry, which comprises over 10% of the global economy, faces tremendous challenges as a consequence of ongoing demographic changes, economic and financial constraints, and inefficiencies that result in a mismatch between money invested and value realized by patients.
The Healthcare Management Initiative at INSEAD was founded on the belief that many of the systemic challenges of the healthcare industry globally can benefit from the application of principles that stem from rigorous, evidence-based thought leadership. As the world’s leading global business school, INSEAD is uniquely positioned to contribute to the creation and dissemination of knowledge in this space. Faculty research is multi-disciplinary, with recent studies deepening our understanding of processes for more effective clinical trials, exploring the role of social and policy factors on public health outcomes, evaluating the impact of marketing on consumer health choices, and modelling how process improvements in healthcare delivery can enhance patient value.
We aim to inspire current and future leaders to tackle healthcare challenges through scientific and innovative approaches that ultimately have the potential to make health systems more efficient and sustainable around the world. We do this by pursuing relevant research that can impact policy and practice, and by developing leaders with the skills for value-driven initiatives in health care.
Stephen E. Chick
Academic Director, INSEAD Healthcare Management Initiative
Professor of Technology and Operations Management
The Novartis Chaired Professor of Healthcare Management
INSEAD’s research complements the school’s perspective that business can serve as a force for good. Business principles have the potential to make a significant positive contribution to healthcare organisations. INSEAD’s positioning as the business school for the world, together with its multi-disciplinary faculty, allows for concepts from non-health sectors to be applied to healthcare in areas ranging from medical products and food consumption to service operations and policy.
As an interdisciplinary centre, the INSEAD Healthcare Management Initiative (HMI) brings together faculty from technology and operations management, marketing, economics and political science, organisational behaviour, strategy, and entrepreneurship. Faculty research is linked to MBA and Executive Education programmes that focus on improving the effectiveness of healthcare delivery and wellness.
Pharmaceutical market access, scientific approaches to improving clinical trials, process and supply chain design, incentive structures and reimbursement policy, as well as business model innovation
Socioeconomic factors impacting child health and development; and the impact of healthcare financing, tax policy and health insurance on population-level health outcomes
Impact of marketing tactics, consumer behaviour analysis and neuroscience to understand people's health and wellness decisions, with a specific focus on obesity.
In The Spotlight
Events and Seminars
Digital Disruption in Healthcare: How healthcare Will be Transformed Through Big Data
A panel hosted by the INSEAD MBA Healthcare and Technology Media and Telecom Clubs
Panelists: Francois Cadiou (CEO and Founder, Healint), Ryan O'Donnell (Director and Site Head of Digital Health, Amgen) and Ignacio Nacho Ferrer (Big Data & Analytics Project Manager, Sanitas)
Moderator: Mark Stabile, Professor of Economics, INSEAD
February 12, 2018
Household Bundling to Reduce Adverse Selection: Application to Social Health Insurance
Anh Nguyen, PhD Candiate in Economics, Columbia University
January 17, 2018
Abstract: This paper explores the use of bundling to reduce adverse selection in insurance markets and its application to social health insurance programs. When the choice to buy health insurance is made at the household level, bundling the insurance policies of household members eliminates the effect of adverse selection within a household since the household can no longer select only sick members to enroll. However, this can exacerbate adverse selection across households, as healthier households might choose to drop out of the insurance market. The net effect of this trade-off depends on the characteristics of the household demand for medical care and risk preferences. I explore this issue using individual survey data on insurance enrollment and medical spending in Vietnam that contain detailed information about the structure of the household. The reduced-form evidence suggests that income, own-price and cross-member substitution effects play important roles in the demand for medical care, which affects a household’s selection of members into insurance. I then develop and estimate a model of household insurance bundle choice and medical utilization that accounts for these features. The results suggest that much of the adverse selection is concentrated within the household. Counterfactual analysis reveals that under optimal pricing, household bundling yields significantly higher consumer surplus and insurance enrollment than individual purchase. Furthermore, the insurance market is less susceptible to complete unraveling under household bundling.
The Effect of Information Disclosure on Industry Payments to Physicians The Effect of Information Disclosure on Industry Payments to Physicians |
Tong Guo, PhD Candidate, Ross School of Business, University of Michigan
November 8, 2017
Abstract: U.S. pharmaceutical companies paid $2.6 billion to physicians in the form of gifts to promote their medicine in 2015. Offering financial incentives to prescribers creates concerns about potential conflict of interest. To curb the inappropriate financial relationships between healthcare providers and firms, several states instituted disclosure laws wherein firms were required to publicly declare the payments that they made to physicians. In 2013, this law was rolled out to all 50 states as part of the Affordable Care Act. A consequence of the public disclosure is that all players in the market - patients, physicians, rival firms, and payers (insurance companies and the government) - can observe which physicians are being targeted by which firms as well as the amount of marketing expenditure directed towards each physician. We investigate the causal impact of this increased transparency on subsequent payments between firms and physicians.
Combining machine learning with quasi-experimental difference-in-difference research design, we find control “clones" for every physician-product pair in the treated states using the Causal Forest algorithm (Wager and Athey 2017). The algorithm is computationally efficient and robust to model mis-specifications, while preserving consistency and asymptotic normality. Using a 29-month national panel covering $100 million-dollar payments between 16 anti-diabetics brands and 50,000 physicians, we find that the monthly payments declined by 2% on average due to disclosure. However, there is considerable heterogeneity in the treatment effects with 14% of the drug-physician pairs showing a significant increase in their monthly payment. Moreover, the decline in payment is smaller among drugs with larger marketing expenditure and prescription volumes, and among physicians who were paid more heavily pre-disclosure and prescribed more heavily. Thus, while information disclosure did lead to reduction in payments on average (as intended by policy makers), the effect is limited for big drugs and popular physicians. We further explore potential mechanisms that are consistent with the data pattern. This paper takes the first step towards shedding light on the role of public disclosure policy in solving conflict-of-interest issues in the pharmaceutical industry, especially in reducing payments made by pharmaceutical firms to physicians.
May 12, 2017
Professor Pierre Chandon welcomes Pascaline Servan-Schreiber, MBA’90D, March 2017 INSEADer of the Month, and the producer of the documentary film The C Word, followed by discussion with Pascaline.
The Cost of Relative Deprivation: Social Subsistence and Malnutrition in India
Seminar by Clément Bellet, London School of Economics and Political Science - Center for Economic Performance
May 5, 2017
Abstract: To be acceptable in society, individuals consume a minimum level of socially valued goods. We call this minimum level social subsistence. In this article, we ask: are malnourished people ready to forgo calories in order to keep up with social subsistence? We consider social subsistence as being driven by the wealthier sections of society. In this case, it increases with relative deprivation, i.e. the aggregate income gap. We use a linear expenditure system to measure good-specific subsistence levels as functions of relative deprivation. Within this demand system, our theory provides guidance to empirically determine which goods are socially valued. The demand system is estimated over nineteen food and non-food categories of expenditure using five Indian National Sample Surveys covering 160,000 Below Poverty Line households. We find that (1) socially valued goods are non-food or less nutritive goods, and (2) the caloric loss due to relative deprivation amounts to 10 to 15 percent of the mean daily per capita calorie consumption. As a counterfactual, we estimate that the number of Below Poverty Line households under malnutrition would be ten percentage points lower in the absence of relative deprivation.
The MBA Healthcare Club brings together MBA participants who wish to start a career in the healthcare industry, those who are seeking to return to the healthcare industry after their MBA, or to simply want to learn more about this industry sector.
The two main goals of the club are to provide information and raise awareness about the healthcare sector for INSEAD MBA participants, and to help MBA participants prepare for a career in this industry.
The healthcare club brings together MBA participants who are interested in the healthcare industry, providing opportunities to share their experiences, to network with industry and other participants, and to meet with various career service representatives. The club also hosts conferences and seminars with industry speakers from pharmaceuticals, biotechnology, medical devices, healthcare services and delivery, as well as consulting, banking and private equity.
The INSEAD Healthcare Alumni Network represents the interests of the approximately 2000 alumni working in the healthcare industry and associated fields. It's mission is to encourage networking and discussion on healthcare topics across geographic boundaries and industry sub-sectors.
INSEAD healthcare alumni are active in pharmaceuticals, biotechnology, diagnostics, medical devices and healthcare services, as well as healthcare-focused consulting, banking and private equity. They work on six continents and include the CEOs of more than 50 healthcare companies.
The network was founded in 2006 and is run by a committee of alumni. It works closely with national healthcare alumni groups in several countries as well as INSEAD's Healthcare Management Initiative. The network also organizes an international conference, the INSEAD Healthcare Alumni Summit. Each year, over 150 alumni and industry leaders gather to discuss trends in the business of healthcare and to take part in what has become a leading industry networking event.
There are active INSEAD Healthcare alumni in alumni country groups including Germany, France, Netherlands, United Kingdom and others.
Alumni participate actively as volunteers, interviewing candidates, serving on governing boards, national alumni associations and reunion committees, and organising events. A majority are members of the INSEAD Alumni Association and its 42 national alumni associations, and return for their alumni reunions on campus. Over 1000 alumni volunteers worldwide serve in various capacities on national alumni association committees, and help to organise reunions and international speaking events as well as interviewing MBA candidates in their home countries.
Click here to join the INSEAD Healthcare Alumni Network group on LinkedIn.
Alumni from the following Johnson & Johnson Corporate Citizenship Trust programmes may join our LinkedIn alumni group - INSEAD Health Leadership & Innovation - to connect and participate in discussions with fellow alumni.
Middle East Health Leadership Programme (MEHLP)
Innovating Health for Tomorrow (IHT)
Strategic Innovation for Community Health (STICH)
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