[Lecture, Jan 9] Subsidy scheme can outperform the unconditional scheme in serviceability when the waiting time target is long
 
time: 2018-01-05

Title: Subsidy scheme can outperform the unconditional scheme in serviceability when the waiting time target is long

Speaker: Dr. Qian Qu, Head of Business Program, School of Business, Singapore University Of Social Sciences

Time: 3:00 pm, January 9, 2018

Venue: Zhuanghui, Building 12, Wushan Campus


Introduction to the Speaker:

Dr. Qian Qu obtained his PhD from Sauder School of Business at at University of British Columbia, Canada. His research interests focus on healthcare management policy, consumer behavior in operations management and supply chain finance. His work has been published in journals such as Production and Operations Management, Manufacturing & Service Operations Management, and European Journal of Operational Research, etc. He was invited to present his work at international renewed business schools including Harvard Business School and Business School of National University of Singapore.


Abstract:

This study analyzes subsidy schemes that are widely used in reducing waiting times for public healthcare service. Patients in the public system are given a subsidy s to use private service if their waiting times exceed a pre-determined threshold t. There is a fixed budget constraint so that a scheme with larger s has a larger t. We assess policies using two criteria: total patient cost and serviceability. We prove analytically that, if patients are equally sensitive to delay, a scheme with a smaller subsidy outperforms one with a larger subsidy on both criteria. Thus, the unconditional scheme dominates all other policies. Using empirically derived parameter values from the Hong Kong Cataract Surgery Program, we then compare policies numerically when patients differ in delay sensitivity. Total patient cost is now unimodal in subsidy amount: the unconditional scheme still yields the lowest total patient cost, but the full subsidy scheme can outperform some intermediate policies. Serviceability is unimodal too, and the full subsidy scheme can outperform the unconditional scheme in serviceability when the waiting time target is long.