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Threshold penalties for health delivery


Themes: Health management

Research conducted by Dr Houyuan Jiang with his co-authors Professors Sergei Savin and Zhan Pang aims to create a unified performance-based contracting framework for medical services in the delivery of healthcare.

Research into the provision of healthcare support for outpatient medical services supports a unified Performance-Based Contract approach with threshold penalties.

Cambridge Judge Business School’s Dr Houyuan Jiang, University Senior Lecturer in Management Science, undertook the study with colleagues from Wharton Business School and Lancaster University Management School, which concludes that a simple threshold-penalty contract would achieve the best waiting-time outcomes for outpatients.

“It’s about rewarding for good performance and penalising for bad performance. There are multi-faceted elements in the NHS because the healthcare system is so complicated. We focus on only one – timely access to care.”

In an interview for the school’s website, Dr Jiang says there are many types of performance-based contracts and insists that the ‘threshold penalty Performance-Based Contract’ proposal is among the best.