By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    bowl of vegetable salad
    Raw Foods: benefits and harms
    November 9, 2021
    pros and cons of the keto diet
    Read This Before You Follow the Keto Diet
    May 18, 2022
    spinal cord injuries
    4 Potential Causes of Spinal Cord Injuries (and How to Seek Compensation)
    May 25, 2022
    Latest News
    5 Steps to a Promising Career as a Healthcare Administrator
    July 31, 2025
    Why Custom Telemedicine Apps Outperform Off‑the‑Shelf Solutions
    July 20, 2025
    How Probate Planning Shapes the Future of Your Estate and Family Care
    July 17, 2025
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Effective Healthcare Requires a Social Approach
    June 15, 2015
    CCBHCs
    2016 Excellence in Behavioral Health Program Design
    February 23, 2016
    conducting Clinical Trial
    5 Tips for Conducting a Clinical Trial
    April 21, 2024
    Latest News
    How IT and Marketing Teams Can Collaborate to Protect Patient Trust
    July 17, 2025
    How Health Choices and Legal Actions Intersect After an Injury
    July 17, 2025
    How communities and healthcare providers can address slip and fall injuries with legal awareness
    July 17, 2025
    Let Your Lawyer Handle the Work Before You Pay Medical Costs
    July 6, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Can a $3 Million Prize Solve a $2.5 Billion Dollar Problem?
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Health Reform > Can a $3 Million Prize Solve a $2.5 Billion Dollar Problem?
BusinessHealth Reform

Can a $3 Million Prize Solve a $2.5 Billion Dollar Problem?

JohnCGoodman
JohnCGoodman
Share
2 Min Read
SHARE

If a health plan could predict which patients will incur the most costs, theoretically it could focus on those patients without wasting resources on its healthy enrollees. According to an article in Slate:

If a health plan could predict which patients will incur the most costs, theoretically it could focus on those patients without wasting resources on its healthy enrollees. According to an article in Slate:

Dr. Richard Merkin, the president and CEO of the Heritage Provider Network (HPN) in California … has put a precise value on solving this problem: $3 million. That’s what Heritage is offering to anyone who can build the algorithm that best predicts which patients will be hospitalized and for how many days over the course of a year, based on a given data set. Merkin hopes the award, called the Heritage Health Prize and kicked off today, will help make Americans more healthy and the American health care system more efficient.

The alternative is to hire a consulting firm to develop a mathematical model which may be expensive and perform rather poorly. But with a prize, rather than just one team of consultants, numerous teams from different disciplines will all simultaneously work on the project. History shows winning teams collectively tend to spend 60 percent more than the value of the prize on the solution. This is not just a theoretical exercise. The teams developing the algorithm will have access to several years worth of HPN’s claims data.

More Read

healthcare organization
5 Actionable Strategies For Healthcare Organizations
3 Tips To Improve Your Healthcare Customer Service Team
Drug Dispensing Robot at Hospital Pharmacy
10 Commandments of Online Reputation Management for Physicians [Part One]
How Physicians Can Leverage Online Tools to Improve Marketing Strategies
   

TAGGED:health care business
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

5 Steps to a Promising Career as a Healthcare Administrator
5 Steps to a Promising Career as a Healthcare Administrator
Health
July 31, 2025
holistic dental
Holistic Dentist Services Are Natural and Safe
Dental health Specialties
July 28, 2025
botox certification
Help Improve People’s Skin Health Via Botox Certification
Skin Specialties
July 22, 2025
Telemedicine Apps
Why Custom Telemedicine Apps Outperform Off‑the‑Shelf Solutions
Health
July 20, 2025

You Might also Like

FAQs for medical marketing content
BusinesseHealth

Use “FAQs” to Produce Marketing Content for Your Medical Practice

April 18, 2014
physician burnout
BusinessHospital AdministrationWellness

Physician Burnout and the Enlightened CFO

April 13, 2013

Diabetes: Outlook for Monitoring, Management, and Technology Development

April 18, 2012

Making the Purple Health Plan More Purple

May 25, 2011
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?