Incentive-based Optimal Intervention Policy to Reduce Hospital Readmissions for COPD Patients

This paper introduces an optimization model to support decision making for selection of appropriate incentive-based interventions to reduce readmissions of patients with chronic obstructive pulmonary disease (COPD). Such a model can be used to identify the optimal incentive policies to encourage patients taking appropriate interventions so that the readmission risk can be minimized under an incentive budget constraint. Closed formulas are derived under various budget scenarios and managerial insights are discussed to guide intervention implementation. The results of this work provide a quantitative tool to support hospitals planning of intervention activities.