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Published on: February 16, 2011
Improving subjective decision making in health care administration
C W Chow1, K M Haddad, A Wong-Boren
1College of Business Administration, San Diego State University, CA 92182.
Hospital & Health Services Administration
|July 1, 1991
Summary
Health care financial management relies on subjective judgments, which are often biased. This review details common decision-making errors and offers methods to improve accuracy in health care administration.
Area of Science:
- Health Care Administration
- Decision Science
- Cognitive Bias
Background:
- Healthcare financial management involves nonquantifiable factors like community relations and employee morale.
- Subjective judgments are integral to healthcare decision-making.
- Research indicates that subjective judgments are prone to biases and inaccuracies.
Purpose of the Study:
- To review common errors in the four phases of decision-making within healthcare financial management.
- To alert healthcare administrators to potential judgment biases.
- To explain methods for improving subjective decision-making.
Main Methods:
- Literature review of scientific research on cognitive biases in decision-making.
- Analysis of errors in problem definition, alternative estimation, choice selection, and outcome evaluation.
- Explanation of strategies to mitigate judgment errors.
Main Results:
- Identified common biases in subjective judgments across decision-making phases.
- Highlighted the impact of cognitive errors on healthcare financial management.
- Presented practical methods to enhance decision-making accuracy.
Conclusions:
- Healthcare administrators must recognize and address cognitive biases in financial management.
- Implementing structured decision-making processes can improve judgment accuracy.
- Awareness of potential errors is crucial for effective healthcare institution management.
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