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Case Study 13
Case Study 13.1
- Who is the principal and who is the agent in this scenario?
- How the agent is better informed than the principal?
- How do poorly aligned incentives affect the system and individual administrators?
- What could the system do to convince nursing home administrators to improve safety?
- Are financial incentives a part of the action plan? Why or why not?
- How could nursing home administrators signal to the company that they are improving safety?
Case Study 13.2
- Why would standardization reduce costs? How could it improve quality?
- How could the hospital reward physicians for helping standardize prostheses?
- How would this reward system help align incentives?
- Are any strategies less likely to cause problems with the Medicare Inspector General?
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