Physician Contract Design under Uncertainty: A Bilevel Chance Constrained Program Approach
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How can hospitals design contracts that motivate physicians without causing burnout? This presentation introduces a bilevel optimization model to solve this classic dilemma. Viewing the clinic as a “leader” and physicians as “followers,” our model uses a chance-constrained program to handle uncertain patient demand. We develop an algorithmic framework to solve this complex problem, finding a near-optimal balance between maximizing service efficiency and maintaining sustainable physician workloads. The model is tested on a Mayo Clinic-inspired scenario, showing its potential to generate smarter, more equitable healthcare contracts. Slides: Physician Contract Design Presentation