FHC #147: Game theory and healthcare—the complex relationship between doctors, payers and patients
Sep 11, 2024
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In this engaging discussion, Dr. Jonathan Fisher, a dedicated cardiologist and advocate for physician well-being, teams up with Dr. Robert Pearl, a prominent healthcare leader and author, alongside Jeremy Corr, CEO of Executive Podcast Solutions, who provides the patient’s perspective. They delve into the application of Game Theory in healthcare, revealing how it can transform adversarial relationships between doctors and insurers into collaborative efforts. The trio also examines the balance of physician autonomy and teamwork, advocating for a shift from competition to cooperation for better patient outcomes.
Game Theory can transform adversarial doctor-insurer relationships into collaborative partnerships, ultimately improving patient outcomes and care efficiency.
Addressing tribalism within the medical community is essential for enhancing teamwork among specialties, leading to better healthcare delivery for patients.
Deep dives
The Doctor-Insurer Dilemma
The relationship between doctors and insurance companies is often characterized by a significant disconnect, leading to frustration and inefficiency in patient care. Physicians frequently find that necessary tests or treatments for their patients are denied by insurers, which can create a lose-lose situation for all parties involved. For instance, a cardiologist might wish to conduct a CT coronary angiogram for a patient, only to have it rejected by the patient's insurance, hindering both the physician's ability to provide optimal care and the patient's access to needed diagnostic information. This dynamic suggests a flawed system where cooperation could lead to better outcomes, yet the current structure often fosters resentment and a lack of communication between the involved parties.
Game Theory and Healthcare Decisions
Game theory provides a framework to analyze and improve interactions within the healthcare system, especially among doctors, insurers, and patients. The complexities of decision-making in healthcare often mirror scenarios like the prisoner's dilemma, where the choices of one player can significantly impact the outcomes for others. For example, when considering resource allocation within healthcare—such as whether to invest in expensive procedures or preventative care—the decision can vary greatly depending on whether individuals focus on self-interest or collective well-being. A shift towards understanding these motivations could create opportunities for win-win situations, wherein both insurers and healthcare providers work collaboratively to prioritize patient health.
The Challenge of Tribalism in Medicine
The phenomenon of tribalism within the medical community complicates collaboration and can lead to suboptimal patient care. Physicians often operate within their specialties, focusing on individual autonomy rather than cooperating across disciplines, which can result in fragmented care for patients with complex health needs. An example highlighted is the lack of communication among specialists treating a single patient, underscoring how this inability to collaborate can detract from the quality of care. Addressing these internal conflicts and fostering a culture of cooperation among different specialties is essential for enhancing healthcare outcomes and revitalizing the spirit of teamwork in medicine.
Empowering Patients through Technology
The integration of technology into healthcare presents both opportunities and challenges for patient empowerment and experience. Increasing access to medical information, such as lab results, can benefit patients by minimizing anxiety and improving autonomy. However, when patients receive results without context or guidance from their healthcare providers, it can lead to unnecessary worry and misinformation, prompting the need for solutions that enhance communication. Utilizing generative AI as an intermediary, for example, could facilitate timely and accurate dissemination of health information, aiding both patients and providers in navigating the complexities of modern healthcare.
This Unfiltered episode of Fixing Healthcare features Dr. Jonathan Fisher, a respected cardiologist and advocate for physician well-being, and Dr. Robert Pearl, healthcare leader and author of ChatGPT, MD. Jeremy Corr, CEO of Executive Podcast Solutions, adds the patient’s perspective, as always.
In this episode, the trio takes a deep dive into the intriguing applications of Game Theory in healthcare. Dr. Pearl introduces Game Theory—a concept that analyzes how individuals or groups make decisions in competitive situations—drawing from its use in business to better understand interactions between physicians, insurers and healthcare organizations.
Today’s topics include:
Game theory and healthcare economics: Dr. Pearl explains how Game Theory can help reframe the often adversarial relationships between doctors and insurers, exploring ways to move from lose-lose situations to more collaborative, win-win outcomes.
The role of autonomy: Dr. Fisher explores the inherent conflict between physician autonomy and collective decision-making, noting how the fragmented nature of healthcare impacts both patient outcomes and physician satisfaction.
Collaboration vs. competition: The group discusses the need for healthcare professionals to shift from tribalism and competition within and between specialties to a more cooperative approach that benefits patients.
The prisoner’s dilemma: Dr. Pearl introduces this classic Game Theory scenario to illustrate the difficult choices doctors face when limited healthcare resources force tough decisions about patient care.
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Fixing Healthcare is a co-production of Dr. Robert Pearl and Jeremy Corr.Subscribe to the show via Apple Podcasts or wherever you find podcasts. Join the conversation or suggest a guest by following the show on Twitter and LinkedIn.