What Do You Mean by Perverse Incentives?

Read Transcript

I was on a panel on Monday with David Goldhill. You may know he is a guy whose father tragically died at a fancy New York hospital. From hospital inquired infection and he was septic and died and the guy was obviously a lovely psychiatrist that beloved by his family in their tragic end.

And yet the way the system works, says you stay longer because of an infection, you get paid more money. Now we're trying to fix and I think your policy makers are onto some of the harm that is created by the iatrogenic consequences of excess care in many instances and I think we are beginning to recognize that more is not better and we are gradually creating some financial incentives to reward reductions and re-admissions, reductions and harm and I strongly applaud them.

I think that's a really good direction for us to send signals to the healthcare delivery system, the excess, produrely/g excess that does harm is a bad thing, not a good thing and that's an important step forward.