IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v200y2018icp291-301.html
   My bibliography  Save this article

The impact of wearable devices and performance payments on health outcomes

Author

Listed:
  • Tarakci, Hakan
  • Kulkarni, Shailesh
  • Ozdemir, Zafer D.

Abstract

In this paper, we study a healthcare system consisting of a healthcare provider and a patient. We first look at a patient with a chronic condition, such as asthma or diabetes, where the patient needs to go through a restorative treatment when she falls sick and through an occasional full treatment. We assume that the health condition of the patient deteriorates faster over time; hence, the need for the full treatment. Borrowing from maintenance/reliability techniques to describe a system prone to failure, we model the health condition of the patient as a reliability problem and find the optimal frequency of full treatment visits to the hospital. We then assume that the patient can use a wearable device that can reduce the health deterioration rate due to more accurate and real-time information; it can also be used to partially administer restorative treatments. The healthcare provider chooses the optimal technology level of the wearable devices, and depending on the cost, we find that they might not always go for the most advanced technology available. We also show that the use of wearable devices increases the overall health condition of the patient. We then apply the same procedure to a patient with a critical condition where each bout of sickness needs to be treated fully instead of a corrective/restorative treatment of the chronic patient. We then quantify the benefits of wearables (especially in terms of patient wellness) in a numerical study.

Suggested Citation

  • Tarakci, Hakan & Kulkarni, Shailesh & Ozdemir, Zafer D., 2018. "The impact of wearable devices and performance payments on health outcomes," International Journal of Production Economics, Elsevier, vol. 200(C), pages 291-301.
    • Handle: RePEc:eee:proeco:v:200:y:2018:i:c:p:291-301
    DOI: 10.1016/j.ijpe.2018.04.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527318301580
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2018.04.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Meller, Russell D. & Kim, David S., 1996. "The impact of preventive maintenance on system cost and buffer size," European Journal of Operational Research, Elsevier, vol. 95(3), pages 577-591, December.
    2. Wang, Hongzhou, 2002. "A survey of maintenance policies of deteriorating systems," European Journal of Operational Research, Elsevier, vol. 139(3), pages 469-489, June.
    3. Zafer Ozdemir & Jack Barron & Subhajyoti Bandyopadhyay, 2011. "An Analysis of the Adoption of Digital Health Records Under Switching Costs," Information Systems Research, INFORMS, vol. 22(3), pages 491-503, September.
    4. Hakan Tarakci, 2016. "Two types of learning effects on maintenance activities," International Journal of Production Research, Taylor & Francis Journals, vol. 54(6), pages 1721-1734, March.
    5. R. Pascual & D. Godoy & H. Figueroa, 2013. "Optimizing maintenance service contracts under imperfect maintenance and a finite time horizon," Applied Stochastic Models in Business and Industry, John Wiley & Sons, vol. 29(5), pages 564-577, September.
    6. Hakan Tarakci & Kwei Tang & Sunantha Teyarachakul, 2013. "Learning and forgetting effects on maintenance outsourcing," IISE Transactions, Taylor & Francis Journals, vol. 45(4), pages 449-463.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhao, Heng & Liu, Zixian & Li, Mei & Liang, Lijun, 2022. "Optimal monitoring policies for chronic diseases under healthcare warranty," Socio-Economic Planning Sciences, Elsevier, vol. 84(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dimitrakos, T.D. & Kyriakidis, E.G., 2008. "A semi-Markov decision algorithm for the maintenance of a production system with buffer capacity and continuous repair times," International Journal of Production Economics, Elsevier, vol. 111(2), pages 752-762, February.
    2. Karamatsoukis, C.C. & Kyriakidis, E.G., 2010. "Optimal maintenance of two stochastically deteriorating machines with an intermediate buffer," European Journal of Operational Research, Elsevier, vol. 207(1), pages 297-308, November.
    3. Lisa M. Maillart & Xiang Fang, 2006. "Optimal maintenance policies for serial, multi‐machine systems with non‐instantaneous repairs," Naval Research Logistics (NRL), John Wiley & Sons, vol. 53(8), pages 804-813, December.
    4. Kyriakidis, E.G. & Dimitrakos, T.D., 2006. "Optimal preventive maintenance of a production system with an intermediate buffer," European Journal of Operational Research, Elsevier, vol. 168(1), pages 86-99, January.
    5. Thomas Sloan, 2008. "Simultaneous determination of production and maintenance schedules using in‐line equipment condition and yield information," Naval Research Logistics (NRL), John Wiley & Sons, vol. 55(2), pages 116-129, March.
    6. Wang, Yukun & Liu, Yiliu & Li, Xiaopeng & Chen, Junyan, 2019. "Multi-phase reliability growth test planning for repairable products sold with a two-dimensional warranty," Reliability Engineering and System Safety, Elsevier, vol. 189(C), pages 315-326.
    7. Borrero, J.S. & Akhavan-Tabatabaei, R., 2013. "Time and inventory dependent optimal maintenance policies for single machine workstations: An MDP approach," European Journal of Operational Research, Elsevier, vol. 228(3), pages 545-555.
    8. Xiang, Yisha, 2013. "Joint optimization of X¯ control chart and preventive maintenance policies: A discrete-time Markov chain approach," European Journal of Operational Research, Elsevier, vol. 229(2), pages 382-390.
    9. Seyed Habib A. Rahmati & Abbas Ahmadi & Kannan Govindan, 2018. "A novel integrated condition-based maintenance and stochastic flexible job shop scheduling problem: simulation-based optimization approach," Annals of Operations Research, Springer, vol. 269(1), pages 583-621, October.
    10. Finkelstein, Maxim & Cha, Ji Hwan & Langston, Amy, 2023. "Improving classical optimal age-replacement policies for degrading items," Reliability Engineering and System Safety, Elsevier, vol. 236(C).
    11. Zhengxin Zhang & Xiaosheng Si & Changhua Hu & Xiangyu Kong, 2015. "Degradation modeling–based remaining useful life estimation: A review on approaches for systems with heterogeneity," Journal of Risk and Reliability, , vol. 229(4), pages 343-355, August.
    12. Ji Hwan Cha & Maxim Finkelstein, 2020. "On optimal life extension for degrading systems," Journal of Risk and Reliability, , vol. 234(3), pages 487-495, June.
    13. Min-Tsai Lai, 2007. "Periodical Replacement Model for a Multi-Unit System Subject to Failure Rate Interaction," Quality & Quantity: International Journal of Methodology, Springer, vol. 41(3), pages 401-411, June.
    14. John E. Fontecha & Oscar O. Guaje & Daniel Duque & Raha Akhavan-Tabatabaei & Juan P. Rodríguez & Andrés L. Medaglia, 2020. "Combined maintenance and routing optimization for large-scale sewage cleaning," Annals of Operations Research, Springer, vol. 286(1), pages 441-474, March.
    15. Ali Salmasnia & Ali Talesh-Kazemi, 2022. "Integrating inventory planning, pricing and maintenance for perishable products in a two-component parallel manufacturing system with common cause failures," Operational Research, Springer, vol. 22(2), pages 1235-1265, April.
    16. A. Azadeh & M. Sheikhalishahi & S. Mortazavi & E. Ahmadi Jooghi, 2017. "Joint quality control and preventive maintenance strategy: a unique taguchi approach," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 8(1), pages 123-134, March.
    17. Liu, Gehui & Chen, Shaokuan & Ho, Tinkin & Ran, Xinchen & Mao, Baohua & Lan, Zhen, 2022. "Optimum opportunistic maintenance schedule over variable horizons considering multi-stage degradation and dynamic strategy," Reliability Engineering and System Safety, Elsevier, vol. 225(C).
    18. Belyi, Dmitriy & Popova, Elmira & Morton, David P. & Damien, Paul, 2017. "Bayesian failure-rate modeling and preventive maintenance optimization," European Journal of Operational Research, Elsevier, vol. 262(3), pages 1085-1093.
    19. Kurt, Murat & Kharoufeh, Jeffrey P., 2010. "Optimally maintaining a Markovian deteriorating system with limited imperfect repairs," European Journal of Operational Research, Elsevier, vol. 205(2), pages 368-380, September.
    20. Dilaver, Halit Metehan & Akçay, Alp & van Houtum, Geert-Jan, 2023. "Integrated planning of asset-use and dry-docking for a fleet of maritime assets," International Journal of Production Economics, Elsevier, vol. 256(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:200:y:2018:i:c:p:291-301. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.