Perspectives on a selected key topic                                                                                       February/March  2019 


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Today's Topic
how Can Healthcare Behavioral Economics Be Used—Or Not— To Advance Population Health And Quality Improvement?
 
Peter Kongstvedt
 Mark Lutes

David Fairchild, MD, MPH
Director
BDC Advisors
Population Health is based on the notion of a dedicated provider taking care of a defined population with a focus on the whole person. So why is it frequently difficult to get patients to take drugs as specified, or engage in chronic disease self-management? For that matter, why do we physicians not always take our own advice? Perhaps our population health strategies would be more effective if we incorporated more learnings regarding how and why humans make the decisions they do.

Behavioral economics, which relies on psychology as well as traditional economic theory, may prove to be a useful new population health tool by helping us understand why patients do what they do. Behavioral economics argues that people don’t always make decisions about their health rationally based on a careful calculation of risks and benefits. Rather consumer and patient decisions are strongly influenced by emotions and the environment, as well as how healthcare choices are presented. In their 2008 book Nudge: Improving Decisions About Health Wellness and Happiness”, Nobel prize winning economist Richard Thaler and co-author Cass Sunstein explain how natural human biases can cause people to make poor decisions, and how these choices negatively impact population health. With knowledge of these biases it may be possible to structure “choice environments” with “peer supports” to better engage patients in their wellness planning, make it more likely people will make healthy choices, and develop “nudges” to improve adherence medication compliance and wellness programs.

One of the key principles of behavioral economists is “loss aversion” or “present bias”---- our tendency to be more sensitive to the potential impact of an immediate loss than the possibility of a future gain. Employers have recognized this and have assumed a more activist role in benefit plan design introducing both rewards and penalties to “nudge” employees to participate in a variety of wellness activities. In our provider world these kind of behavioral “nudges” may include use of telehealth to improve access of patients to their providers; or new remote technology such as Adhere Tech’s digital “smart pill bottles” reported in the NY Times recently, which can alert patients when it’s time for medication, and send an automatic reminder if they miss a dose in real time. New technologies, that enable providers to track behavior and connect with patients, however, “are not in and of themselves going to change behavior in high risk patients”, according to Kevin Volpp, MD, PhD., founding director of the University of Pennsylvania’s Center for Health Incentives and Behavioral Economics: “You have to combine technology with an engagement approach that is really going to provide ongoing active participation”

Volpp has designed randomized trials to “nudge” physicians to provide evidence-based care, as well as testing how to help consumers choose better health plans depending on how options are provided. And some health plans are trying a variety of behavioral economic concepts to reward physicians for quality, including peer comparisons and bonuses for continuous improvement instead of basing rewards on hitting one absolute target. My own experience in designing population health programs confirms the need to combine peer and social support to change patient behaviors. The discipline of behavioral economics is still young, and will need further testing to see if the concepts are scalable. But it is already stretching our thinking, and may help provide a more complete understanding of patient and physician decision making, and how we can design more sensible strategies for population health.

Mark Lutes
 Lindsay R. Resnick

Lindsay R. Resnick
Executive Vice President
Wunderman Health
  It’s HUGE! Healthcare behavioral economics is the effect of psychological, cognitive, emotional, and social factors on the economic and health decisions of individuals. Not only do consumers and patients face a mind-numbing array of financial healthcare choices, there are also tough decisions navigating the complexities of how, when and where medical care is delivered. It's no surprise that most consumers say health care is so complicated they don't know what's covered, what it will cost or where’s the best place to go to get it. The result often comes in the form of confusion, apathy and disengagement.

The ability to engage patients in follow-up treatments and adherence protocols is central to the success of population health management programs and ultimately, quality improvement. Today, millions of dollars and countless hours are spent each year to try to get health care consumers to do what’s good for them. It’s a long, slow and expensive effort that sees only modest behavior change. It’s the dilemma of ‘health inertia’…getting people to face personal health challenges, adhere to a plan of action, and stay motivated to proactively deal with their health. It’s fighting human nature to get results.

Changing behavior takes moving away from educational-based efforts overloaded with complex clinical and instructional messaging about conditions and treatment options. There needs to be a shift from education to inspiration, from features and functions to gut-level emotional appeals that move people to action and sustain engagement. It’s about connecting across the customer lifecycle around personal, relevant motivations and deep, sometimes even unconscious desires and values like freedom, happiness, personal goals, self-esteem, or the ability to be a better parent or partner. It’s the principles of healthcare behavioral economics.

Effective population health management is about inspiring individuals to make smart, personalized choices in a health care ecosystem defined by significant out-of-pocket responsibility and complicated care delivery choices. Monotone, common denominator off-the-shelf programs to improve patient health around chronic conditions, prevention, early detection or wellness isn't enough. Success only comes when you can get individuals to respond, interact and engage in a meaningful two-way relationship driven by emotion, psychological drivers, and most importantly built on trust. Payers, providers and employers need to step up and support the underlying belief that connected, motivated and empowered health care consumers will help drive better care, better quality, better outcomes, and ultimately, better value. 
   

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