Example how wrong incentives impede progress

Small example how a incorrect framework impedes progress:

Till 1996 hospital costs in Germany were charged by day. The longer patients stayed in hospital the more the hospitals earned. With the result that hospital care in Germany was the longest in western countries. One bad effect: New procedures like the minimally invasive surgery had to fight against resistance and therefore was implemented later than necessary.

The removal of the gallbladder with open technique takes three weeks of hospital care, with the minimally invasive surgery patients want to leave hospital the day after the surgery.

found at “Gesundheit und Freiheit – Entwurf einer Gesundheitswirtschaft für freie Bürger” by Lutz Helmig

Join the Pixeloekonom on
Facebook, follow him on Twitter, Instagram and Google+ or subscribe via RSS.

One thought on “Example how wrong incentives impede progress

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.