Original Topic
Discuss 2 ways healthcare leaders use behavioral economics to improve decision-making.
Instructions
Each reply must be 300-400 words. You must include at least 1 citation for each reply. Current APA format must be used.
1St Student
Stephanie Watson
Stephanie Watson
YesterdayOct 12 at 6:45pm
Manage Discussion Entry
Moral decision‐making is trying conclusively since there is as often as possible no single most wise reply. It isn’t just a movement in changing risks and loads, however rather a cycle whereby individual characteristics are joined, some of which may be seen as prudent. Befuddling issues further, these decisions once in a while incorporate complex lead decisional measures that are exceptional to an individual and a decision. Standard decision‐making theories have laid on the fundamental assumption that people are sensible decision‐makers and that they picked the elective that enhances their utility, changing risks and benefits. Much more lately, with a growing examination in friendly monetary issues, decision‐making theories have explained the consistent deviations seen from assumptions made by adjusted choice hypotheses. These fresher theories illuminate additional hardships affecting decision‐makers as they try to make decisions unsurprising with their characteristics and feelings. For instance, in spite of the fact that holding and pulling out life‐sustaining treatment may be seen as ethically the equivalent, it is a lot recognized that the energy of the decision is exceptionally uncommon. Growing experience with these particular social decision‐making approaches might work on parental figures and the family’s incredible joint exertion in shared decision‐making measures. From the get-go, the social monetary issue indicated that people picked options with the most significant in everyday benefit or utility, appropriately, showing practical decision‐making. This old-style theory known as the typical utility speculation can be portrayed mathematically by improving an outcome’s probability with its worth or utility. (Haward, 2015).
Conduct financial aspects can be improved by using procedures from social monetary issues to recognize and target express unique inclinations at the singular level. In this interesting situation, the possibility of speculation gives a sensible design inside which dynamic cycles can be operationalized. People are consistently stood up to with choices under conditions of weakness. In the prosperity region, for example, patients need to close if to take a treatment, pondering the two its benefits (prosperity results) and expenses (results), which might pass on gigantic weakness. With the progression of prescription, an extending number of continuous contaminations have become ‘sensible’, inciting new kinds of compromises. Type 2 diabetes mellitus is a real representation of this: if generally controlled, people with T2DM can expect prosperous results like typical people. Regardless, having extraordinary control of the disease requires holding quick to a particular number of lifestyle changes (‘self-organization of the disorder’, including getting a strong eating schedule, interfacing with into standard real work, being an adherent to prescriptions, etc) and before long an enormous degree of patients disregard to change their direct once dissected. Likewise, people who don’t change their direction may have fewer liabilities in their day-to-day existence anyway may thusly undoubtedly encounter the evil impacts of burdens that may have been avoided. (Rouyard, T., 2018).
A boss ought to, for example, respond correspondingly to a portrayal of decisions to address a scene of one more disease expected to impact 600 people whether it is communicated as 200 people saved or 400 people fail miserably—the objective danger is indistinct in the two depictions. Notwithstanding, lead monetary viewpoints have found that the illustrating of risks and probabilities matters; people might react contrastingly to positive edges, (for instance, the chance of living) than to adverse housings, (for instance, the chance of passing on). In one examination that expounds a theoretical circumstance including sickness, patients, graduate understudies, and specialists totally will undoubtedly pick operation over-brightening if the results were illustrated viewing the probability of living rather than the probability of dying. (Yokum, D., 2016).
Social business analysts who practice brain science speculations accept there is a more exhaustive methodology than a traditional monetary way to deal with clarify medical services’ human conduct. As per research, conduct financial matters has acquired a lot of force among researchers throughout the most recent twenty years on account of its imaginative and dubious methods of clarifying cycles and systems supporting people’s decisions and dynamics (Carminati, 2020).
References:
Rouyard, T., Attema, A., Baskerville, R., Leal, J., & Gray, A. (2018). Risk attitudes of people with ‘manageable’ chronic disease: An analysis under prospect theory. Social Science & Medicine (1982), 214, 144-153. doi:10.1016/j.socscimed.2018.08.007
Haward, M. F., & Janvier, A. (2015). An introduction to behavioral decision‐making theories for pediatricians. Acta Pediatric, 104(4), 340-345. doi:10.1111/apa.12948
Yokum, D. (2016). Applying Behavioral Economics to Public Health Policy. American Journal of Preventive Medicine., 50(5), S13–S19. https://doi.org/10.1016/j.amepre.2016.02.007
Carminati, L. (2020). Behavioral economics and human decision making: Instances from the health care system. Health Policy (Amsterdam), 124(6), 659-664. doi:10.1016/j.healthpol.2020.03.012
2nd Student
Rasheed Scott
Rasheed Scott
YesterdayOct 12 at 9:51pm
Manage Discussion Entry
To begin Standard economic models, start with assumptions that have not been fully backed by research. Those assumptions may include the notations that decision-makers are always rational, have unlimited willpower, and are concerned only about themselves (Lee, 2019). Behavioral economics s the study of the principles and forces behind people’s decision-making behaviors and is a rapidly growing area (Moore et al., 2018). Behavioral economics has also been aligned to incentivized health outcomes and improved health behavior changes, amongst other changes (Moore et al., 2018). Lastly, behavioral economics elements help nurses, other healthcare providers, and leaders understand and support patient engagement in decision-making in various scenarios.
The fundamental insight of behavioral economics is that behavior is guided by the very fallible human brain and is greatly influenced by the environment or context in which choices are made. This is precisely why real-life decisions appear to be affected by how they are presented. Leading us to two ways healthcare leaders can use behavioral economics to improve decision making. The two key concepts of behavioral economics that healthcare managers may want to consider when making care decisions with patients and their families are framing bias and loss aversion. Framing bias is the effect of presenting the same data in different ways (Lee, 2019). An example being a clinician can offer the number of patients who lived post-treatment instead of the number of patients who died.
Additionally, the significant influence of framing has been demonstrated in many public health domains, such as messaging about blood transfusion, smoking cessation, sunscreen use, and mammography utilization. Loss aversion, however, focuses on avoiding losses rather than maximizing gains (Lee, 2019). Moreover, this describes when a person dislikes the “loss” of something they possess considerably more than they would like to gain something new.
Behavioral economics provides an empirical perspective on how individuals make decisions, including the vital realization that even subtle features can have meaningful impacts on behavior (Matjasko et al., 2016). These subtle features include several strategies: looking hard for evidence that you are wrong, appoint someone to tear apart analysis, reward those who express honest agreement, listen carefully, seek the option of people who disagree, reframe problems, talk about feelings, postpone committing to strategies, make sure review process and exit strategies are part of decision making, and be aware decision making can lead to mistakes (Lee, 2019). While these steps will not shield managers from making mistakes, they may help to eliminate some. Managers are attempting to use shortcuts. When making challenging or complex decisions, shortcuts can seem ideal. Brainpower and time are scarce resources, so shortcuts in decision making sense (Lee, 2019). Unfortunately, to put it bluntly, healthcare managers are not as consistent, logical, or objective as we might hope. The characteristics of decision-making expose medical practices to risks such as cost overruns, lost sales, unsuccessful investments, and inefficient incentive schemes. However, behavioral biases create risks, and knowing them can open up countless opportunities.
Philippians 4:6-7 states, “Do not be anxious about anything, but in everything by prayer and supplication with thanksgiving let your requests be made known to God. And the peace of God, which surpasses all understanding, will guard your hearts and your minds in Christ Jesus” This Bible verse shows the value of the opportunity. As healthcare managers, we have the chance to change the world. So, we must make smart decisions and understand the decision-making process. While we may fail or use shortcuts to find answers, we must always remember to lean on God. Every day I am forced to make decisions for my practice, which I am not yet sure about, and others I know will make us better health care leaders. Decision-making is not easy; however, as we change and grow, our decisions become stronger.
References
Lee, R. H. (2019). Economics for healthcare managers (4th ed.). Chicago, IL: AUPHA.
Matjasko, J. L., Cawley, J. H., Baker-Goering, M. M., & Yokum, D. V. (2016). Applying behavioral economics to public health policy: Illustrative examples and promising directions. American Journal of Preventive Medicine, 50(5 Suppl 1), S13-S19. https://doi.org/10.1016/j.amepre.2016.02.007
Moore, S. E., Ulbrich, H. H., Hepburn, K., Holaday, B., Mayo, R., Sharp, J., & Pruitt, R. H. (2018). Behavioral economics: A new lens for understanding genomic decision making. Journal of Nursing Scholarship, 50(3), 241-248. https://doi.org/10.1111/jnu.12379
Discussion Board response to two students post
Student Name
University
Course
Professor Name
Date
Response to Stephanie Watson’s Post
Stephanie’s post began by explaining the concept of behavioral economics and its application to decision making. Stevens (2017) explains that decision-makers do not always make rational decisions because they are many factors that influence their behaviors. Human beings always make decisions that promote their best interests although this is not always the case because no human is completely selfish or has complete willpower. In a world where resources are scarce, people tend to make decisions based on their experiences rather than what is dictated in theory. People are also naturally inconsistent and their preferences change from time to time. I like the example provided in the post about diabetic patients who require to adhere to significant changes in their lifestyles to manage the illness. However, despite this knowledge, many patients find it hard to maintain a healthy diet and engage in more physical activity. This example illustrates how individual situations and their characteristics influence decision making even though the decisions are not rational.
The post also explains that managers can tweak the environmental conditions to enhance better decision making among patients. Lee (2019) adds that in health promotion, healthcare leaders can devise strategies that help modify patient behavior without changing other aspects of the situation. For example, for diabetic patients, healthcare professionals may send daily reminders to encourage constant physical activity. When making any decisions, people should always focus on what is good for them even when it may be difficult to do so. 1st Corinthians 10: 13 states, “No temptation has overtaken you that is not common to man. God is faithful, and he will not let you be tempted beyond your ability, but with the temptation he will also provide the way of escape, that you may be able to endure it” (English Standard Version Bible, 2001).
References
English Standard Version Bible. (2001). ESV Online. https://esv.literalword.com/
Lee, R. H. (2019). Economics for healthcare managers (4th ed.). AUPHA. ISBN: 9781640550488.
Stevens, J. (2017). The Promising Contributions of Behavioral Economics to Quality Improvement in Health Care. Pediatric Quality & Safety, 2(3), e023. https://doi.org/10.1097/pq9.0000000000000023
Response to Rasheed Scott’s Post
Rasheed begins the post by defining behavioral economics including its association with decision making. The post also lists the benefits of behavioral economics including influencing patients to make better decisions. As described in the post, the human brain is greatly influenced by context and the environment. Therefore, it is possible to influence an individual’s decisions by changing the context of the situation or by changing the environment. The post describes loss aversion and framing biases as the two ways that healthcare leaders can use to influence decision making. As per Wang and Groene (2020), framing bias is the way information is presented that is likely to influence the decision of a healthcare consumer. The example provided in the post illustrates how presenting data in a different way has different impacts on patients’ perspectives. Lee (2019) explains that focusing on positive outcomes rather than negative outcomes elicits better responses. In healthcare, focusing on positive patient outcomes such as satisfaction can attract more consumers than focusing on reduced mortality or morbidity rates. Loss aversion is also an important strategy because people tend to avoid losses.
The post also concludes that behavioral biases can be used by healthcare leaders to create opportunities that improve organizational performance. I agree with the statement because irrational beliefs influence our decisions even though we may not be aware of them and healthcare leaders should take advantage of opportunities that may arise as a result of these biases. The Bible advises Christians to take advantage of any opportunities presented to them. Colossians 4:5-7 states, “Walk in wisdom toward outsiders, making the best use of the time. 6 Let your speech always be gracious, seasoned with salt, so that you may know how you ought to answer each person” (English Standard Version Bible, 2001).
References
English Standard Version Bible. (2001). ESV Online. https://esv.literalword.com/
Lee, R. H. (2019). Economics for healthcare managers (4th ed.). AUPHA. ISBN: 9781640550488.
Wang, S., & Groene, O. (2020). The effectiveness of behavioral economics-informed interventions on physician behavioral change: A systematic literature review. PLOS ONE, 15(6), e0234149. https://doi.org/10.1371/journal.pone.0234149