Decreasing the $290 billion cost of poor drug adherence

A report in the Wall street Journal (May 21, 2013) quotes a $290 billion cost estimated by the New England Health Institute due to poor drug regimen adherence by 33% to 50% of the patients, thus increasing hospital or other medical costs. One solution proposed is to install Magnesium-Copper-Silicon sensors (the size of a grain of sand) in each pill that would confirm dosages are being followed. Other solutions include games and rewards such as charitable donations following adherence to prescribed regimens. Given that better adherence can decrease wasted costs, how should the benefits be shared to increase conformance ? Should third party companies be added to existing healthcare supply chains to verify or encourage conformance to prescribed dosages and be paid based on successful outcomes ? How should individual patients be incented to comply to improve their own health outcomes or should doctors be held responsible for patient conformance ?

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About aviyer2010

Professor
This entry was posted in Operations Management, Service Operations, Supply Chain Issues and tagged , , , , , , . Bookmark the permalink.

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