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
Hospital Readmissions Reduction Program does not provide the right incentives: Issues and remedies
Tolga Tezcan, Professor of Management Science and Operations, London Business School
Abstract: The Hospital Readmissions Reduction Program (HRRP) reduces Medicare payments to hospitals with higher-than-expected readmission rates where the expected readmission rate for each hospital is determined based on the readmission levels at other hospitals. Although similar relative-performance-based schemes are shown to lead to socially optimal outcomes in other settings (e.g., cost cutting efforts), HRRP differs from these schemes in three respects: (i) deviation from the targets are adjusted using a multiplier; (ii) the total financial penalty for a hospital with higher-than-expected readmission rate is capped; and (iii) hospitals with lower-than-expected readmission rates do not receive bonus payments. We study three regulatory schemes derived from HRRP to determine the impact of each feature, and use a principal-agent model to show that: (i) HRRP over-penalizes hospitals with excess readmissions because of the multiplier and its effect can be substantial; (ii) having a penalty cap can curtail the effect of financial incentives and result in a no-equilibrium outcome when the cap is too low; and (iii) not allowing bonus payments leads to many alternative symmetric equilibria, including one where hospitals exert no effort to reduce readmissions. These results show that HRRP does not provide the right incentives for hospitals to reduce readmissions. Next we show that a bundled payment type reimbursement method, which reimburses hospitals once for each episode of care (including readmissions), leads to socially optimal cost and readmissions reduction efforts. Finally we show that, when delays to accessing care are inevitable, the reimbursement schemes need to provide additional incentives for hospitals to invest sufficiently in capacity.
Interpretable Analytics for Healthcare Operations: New Algorithms and Implementation
Jean Pauphilet, Assistant Professor, London Business School
Abstract: Analytics could improve healthcare delivery, provided that it answers industry concerns, chief among which is the issue of interpretability. In this talk, we address these challenges by designing new interpretable machine learning techniques and implementing them in a hospital environment. In the first part of the talk, we present novel algorithmic methods for feature selection in statistics. We consider the problem of training a linear predictive model under sparsity constraints. We propose a combination of a first-order heuristic and a cutting-plane algorithm to successfully compute high-quality solutions for problems with up to 100,000s covariates. On extensive numerical experiments, we achieve more accurate feature selection than competitors, with comparable predictive power. In the second part of the talk, we present a real-world application of these techniques for hospital patient flow prediction, where we obtain interpretable insights from using decision tree models and advanced feature selection techniques. Our methods are now fully implemented at a major hospital in Boston and provide daily predictions with 80% accuracy, alongside patient-specific explanations. Empirically, we observe a 4% reduction in patient misplacement due to our tool.
Transactive Memory Systems and Hospital Trauma Resuscitation Team Performance
Linda Argote, Thomas Lord Professor of Organizational Behavior and Theory and Director, Center for Organizational Learning, Innovation and Knowledge at Carnegie Mellon University, Tepper School of Business
Abstract: Known as systems of “who knows what,” a transactive memory system is a collective system for coding, storing and retrieving information. We extend the study of transactive memory systems to the important context of hospital trauma resuscitation teams. Our central hypothesis is that trauma teams with well-developed transactive memory systems perform better than teams lacking such memory systems. A transactive memory enables teams to assign tasks to their most qualified members, to trust each other’s knowledge and skills, and to know whom to consult for advice and expertise. We developed behavioral indicators of TMS and coded video recordings of trauma teams treating patients with severe injuries. The videotape data are combined with archival data from patient electronic health records to measure patient outcomes and with human resource data to measure characteristics of the members of the trauma team. Results based on data from 100 patients indicate that patients treated by teams with well-developed TMS have significantly shorter lengths of stay (LOS) than those treated by teams with less developed TMS. Results will be presented, planned analyses described and how to build a TMS in the trauma team context discussed.
INSEAD Business and Society Annual Forum on Health
Grand Palais, Paris, France
A healthy population is an engine for economic development and social progress, yet half the world still lacks access to basic health care services. The UN Sustainable Development Goals address this need through SDG3: Good Health and Well-being, which aims to “ensure healthy lives and promote well-being for all at all ages”. Meeting the targets associated with this goal is important for improving global health. Moreover, innovative healthcare solutions are compelling business opportunities.
INSEAD is convening a Business and Society Forum on Health to explore the potential for evidence-based solutions to improve the wellbeing of societies. Our Hoffmann Global Institute for Business and Society and Healthcare Management Initiative are partnering with AXA, a world leader in health insurance, to bring together a multidisciplinary group of faculty and practitioners to address a range of topics in health. The Forum discussions will cover nutrition, public health, healthcare delivery, access to medicine, innovation and more.
For the programme and registration, please click here.
Assessing the Impact of Innovations in Healthcare Delivery: Shared Medical Appointments as an Alternative to Routine Individual Appointments
Kamalini Ramdas, Professor of Management Science & Operations, London Business School
Abstract: Healthcare delivery is a field that is ripe for innovation. I will briefly present a framework for innovation in service delivery that applies to healthcare as well. Next I will report on research focused on assessing the impact and identifying the mechanisms of impact of a major healthcare delivery innovation, shared medical appointments. These are a substitute for traditional one-on-one routine care for chronic diseases. In a shared medical appointment, patients with similar conditions are seen in a group, with each patient getting full one-on-one care from the physician, while others observe. Preliminary results from a 1,000 patient multi-stage randomized controlled trial at the Aravind Eye Hospital in Pondicherry, India indicate that shared medical appointments increase patients' knowledge, satisfaction and compliance to medication. Patients who see the same peers repeatedly are also less likely to be late for follow up appointments. We also identify potential mechanisms of impact.
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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