Product line management: financial incentives mean healthier patients

For the past few years, The Washington Hospital Center has had a prepaid obstetric clinic program for uninsured patients. Although the program was satisfactory, some deficiencies had developed. For example, research had shown a high correlation between a mother's lack of prenatal care and high healthcare expenditures. By implementing a new program that included financial incentives for various prenatal care programs, the hospital was able to financially break even with the old program, have a more predictable financial performance evaluation, and have healthier mothers and babies.