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
Supply Chain 4.0: Challenges, Opportunities and Quick Wins
The COVID pandemic poses significant challenges for supply chains worldwide. Yet, half of organizations have not yet built a roadmap for supply chain digital transformation. In fact, most senior level discussions on digital transformation remain focused on customer centricity. Learn about the challenges, opportunities and futures of supply chains in the Pharmaceuticals and beyond with industry experts Kimberly Lounds Foster (Senior Vice President, Global Supply Chain, Bristol Myers Squibb), Evren Ozkaya (Founder and CEO, Supply Chain Wizard) and Prahsant Yadav (Affiliate Professor of Technology and Operations Management, INSEAD). The webinar is hosted by INSEAD Professor of Technology and Operations Management Atalay Atasu.
Harnessing data intelligence for medical diagnostics: The case of Unilabs Portugal
Together with Luis Menezes (CEO of Unilabs Portugal) and Jose Pedro Almeida (Data Intelligence Director at Unilabs Portugal), we will deep dive into Unilabs Portugal transformational journey and explore how data driven medical diagnostics enabled the organization to respond to the COVID-19 pandemic in a timely manner, to generate insights on individual patient responses to medication, and to promote evidence-based treatment to achieve better clinical outcomes. The session is hosted by Stephen E. Chick (INSEAD Professor of Technology Operations and Management ) and Ridhima Aggarwal (Salmon and Rameau Associate Director of the INSEAD Healthcare Management Initiative).
• Explore the critical role of diagnostics in health systems.
• Learn how organizational structure can facilitate digital transformation.
• Understand how data analytics can optimize and improve internal operations such as call centers and purchasing, enhance existing services – such as the prioritization of lab results for critical subpopulations – and develop new services such as AI-driven analytics for imaging and population health.
Access to Medicines in Emerging Markets: How Executives and Investors Can Help
Hosted by INSEAD Hoffmann Global Institute for Business and Society at the SDG Tent
Abstract: Improving access to medicines and health products in low- and middle-income countries allows pharmaceutical and life science companies to unlock growth by serving underserved populations and contributes to the creation of healthier and more productive societies. It also contributes to preventing disease outbreaks that can have significant health and economic consequences globally. The Access to Medicine Index ranks 20 of the world’s largest pharmaceutical companies on how they contribute to access to medicine in key areas such as R&D, pricing, manufacturing & distribution, and compliance. The ATM Index shows that in the last 10 years large pharma and life sciences companies have made significant progress on many aspects of improving access. The continuation and scale up of such initiatives requires strong commitment from executive management and large investors. This panel discussion will bring together senior executives to discuss the progress made on this front so far, and ways to further bolster efforts to improve access to medicines in low- and middle-income countries.
Managing Two-Dose COVID-19 Vaccine Rollouts with Limited Supply
Ho-Yin Mak, Associate Professor in Management Science, University of Oxford, Saïd Business School
Abstract: We consider the problem of rolling out an approved COVID-19 vaccine (e.g., the one developed by Pfizer) that requires two doses to be spaced apart by a fixed time interval. Facing severely limited supply and mounting pressure to rapidly achieve herd immunity through vaccination, the U.K. and U.S. governments, along with the E.U., face the decision of whether to reserve stocks for the required second doses for returning recipients. We model the vaccine rollout process and complement it with an SIR (susceptible-infected-recovered) model that captures the disease transmission process. For a two-dose vaccine, we model the inventory dynamics under three stocking policies: (1) holding back second doses, (2) releasing second doses, and (3) stretching the lead time between doses. Counterintuitively, we show that even if one intends to release all second doses, only less than half of the available doses can be allocated to first-dose appointments in order to avoid delays in administering the required second doses for returning recipients, no matter how quickly supply grows over time. We show analytically that under a (weakly) increasing vaccine production rate, releasing second doses reduces the number of infections but creates uneven vaccination patterns. Contrary to popular belief that releasing the required second doses will reduce infections significantly, our numerical results reveal the reduction in infections is quite modest. Compared with the policy of releasing second doses, stretching the between-dose lead time flattens the infection curve but leads to a higher total case count. Finally, we consider an alternative single-dose vaccine with a lower overall efficacy (e.g., the Johnson & Johnson vaccine) and show it can be more effective than its two-dose counterparts in slowing down infections and ending the pandemic. As more than one hundred countries have yet to start their vaccination efforts as of February 2021, our research has important policy implications for various national and local governments to develop their vaccine rollout strategies especially when their supply of vaccine will be likely to be limited initially.
Retail Store Customer Flow and COVID-19 Ttransmission
Robert Shumsky, Professor of Operations Management, Faculty Co-Director, Master of Health Care Delivery Science Program, Tuck School of Business at Dartmouth
Abstract: We examine how operational changes in customer flows in retail stores affect the rate of COVID-19 transmission. We combine a model of customer movement with two models of disease transmission: direct exposure when two customers are in close proximity and wake exposure when one customer is in the airflow behind another customer. We find that the effectiveness of some operational interventions are sensitive to the primary mode of transmission. Restricting customer flow to one-way movement is highly effective if direct exposure is the dominant mode of transmission. In particular, the rate of direct transmission under full compliance with one-way movement is less than one-third the rate under two-way movement. Directing customers to follow one-way flow, however, is not effective if wake exposure dominates. We find that two other interventions - reducing the speed variance of customers and throughput control - can be effective whether direct or wake transmission is dominant. We also examine the trade-off between customer throughput and the risk of infection to customers, and we show how the optimal throughput rate drops rapidly as the population prevalence rises.
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.
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)
Who we are
If you have any questions related to the Centre, we are here to help you.