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Behavioral Economics and Healthcare

By Admin | July 17, 2017

Behavioral economics is based on the principle that most people will not change their behavior when given facts. A prime example is the former governor of New Jersey John Corzine’s refusal to wear a seat belt, even though there’s countless data and evidence that proves they save lives. He was nearly killed in an automobile accident in 2007 because he wasn’t wearing his seat belt.

David Asch, MD, executive director of the Center for Health Care Innovation, says people are irrational. We have biases, emotions, and social context driving our decisions and opinions, but our irrational behaviors are predictable.

One example has to do with organ donation. People in the United States must sign up to be organ donors, and the numbers are relatively low. In countries where citizens are automatically considered donors unless they opt-out, there are more donors and survival rates are around 98 percent.

Asch has a solution for insurance policies: less incentives and simpler plans.

For more, read “Healthcare industry should employ behavioral economics to change outcomes, increase financial success” by Healthcare Finance News.

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