How Incentives Determine the Method of Dialysis Treatment

This paper analyzes the dialysis industry through a comparison of the current dialysis systems in the United States, Hong Kong, and Guatemala. The two main types of treatment are hemodialysis which must be done in a center, and peritoneal dialysis which can be done in the patient’s home. Peritoneal dialysis is less costly and still provides high quality results to patients yet only 11 percent of people being treated worldwide use this treatment form. The comparison of the three countries explains how powerful incentives are in determining what treatment method is used. Hong Kong has demonstrated how to align incentives in order to create a system where over 80 percent of patients use peritoneal dialysis. This was achieved by educating doctors on peritoneal dialysis, and only providing financial support to those who use peritoneal dialysis unless a doctor states it is not in the best interest of the patient. Hong Kong has aligned the incentives of the doctors, patients, and the government. This study shows the potential to change the dialysis industry in other countries by aligning incentives between all parties involved leading to a more efficient long-term outcom