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Updated: Jul 13, 2026

Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods
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Risk management: extreme honesty may be the best policy.

S S Kraman1, G Hamm

  • 1Veterans Affairs Medical Center, Lexington, Kentucky 40511, USA.

Annals of Internal Medicine
|December 28, 1999
PubMed
Summary

This humanistic risk management policy focuses on patient care and transparency after medical errors. Early results show moderate liability payments, suggesting a positive financial impact.

Keywords:
Empirical ApproachHealth Care and Public HealthLegal Approach

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Area of Science:

  • Healthcare Management
  • Patient Safety
  • Medical Ethics

Background:

  • Traditional risk management often focuses on litigation after adverse events.
  • A humanistic approach prioritizes patient relationships and open communication.
  • The Veterans Affairs (VA) medical system has explored alternative risk management strategies.

Purpose of the Study:

  • To review a humanistic risk management policy.
  • To assess its components: early injury review, patient relationship maintenance, proactive disclosure, and fair compensation.
  • To evaluate preliminary financial outcomes and future potential.

Main Methods:

  • Review of a humanistic risk management policy implemented at a VA medical center since 1987.
  • Analysis of liability payment data from the implementing facility.
  • Examination of the policy's core components and their integration.

Main Results:

  • The humanistic risk management policy includes early injury review, patient relationship maintenance, proactive disclosure, and fair compensation.
  • One VA medical center using this policy since 1987 has reported moderate liability payments.
  • The Department of Veterans Affairs mandates this policy for all facilities, indicating growing adoption.

Conclusions:

  • The humanistic risk management policy shows promise in managing medical errors and patient safety.
  • Preliminary data suggests potential for reduced financial liability.
  • Wider implementation across the VA system will provide more comprehensive data on its effectiveness.