[throwawaywith]

Can this be expanded to selling “nursing home futures”? In a typical home, families pay X/month to keep their loved ones taken care of. In my plan, investors can buy shares in each resident, and can expect an increasing return as the upfront costs of establishing the resident are amortized.

The nursing home turns a profit if a resident dies within a period of time where the “upfront costs” are not yet all spent. The investors profit if a resident stays alive for a long period of time in the home.

The perversion of incentives will encourage good care of the residents that maxes out their life span and to ensure that investors keep coming back.

I wonder if someone with a finance background could tease out the benefits and pitfalls of this plan.

[aaron_m04]

Is maxing out the resident's life span a good goal though? Quality of life matters too.

[danieltillett]

The two are strongly correlated and one is much easier to quantify.

[dragonwriter]

If one is made an incentivized goal, the correlation will be reduced. That's the underpinning of Goodhart’s Law.

https://en.m.wikipedia.org/wiki/Goodhart%27s_law