Abstract
Anecdotal evidence suggests that patients who have life-threatening conditions often choose to undergo high-cost, high-risk treatments for them. This kind of risk-seeking behavior seems irrational because most patients are risk-averse. The Health Stock Risk Adjustment (HSRA) model seeks to explain this phenomenon. The model is based on the concept of relative health stock- the ratio of patients' expected quality-adjusted life years (QALYs) after a diagnosis to their expected QALYs before the diagnosis. The model predicts risk-averse patients will behave in a risk-seeking manner as their relative health stocks deteriorate. The HSRA model can help physicians better understand why some seriously ill patients seek high-risk treatments white others elect to forgo treatment. State legislatures and insurers are attempting to appropriately design insurance benefits for patients with life- threatening conditions. The HSRA model can help predict which patients will most likely take advantage of these benefits.
Original language | English (US) |
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Pages (from-to) | 84-94 |
Number of pages | 11 |
Journal | Medical Decision Making |
Volume | 18 |
Issue number | 1 |
DOIs | |
State | Published - 1998 |
Externally published | Yes |
Keywords
- Decision making
- Expected utility theory
- Patients' preferences
- Treatment choice
ASJC Scopus subject areas
- Health Policy