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Fair allocation strategies for opioid settlements.

Qiushi Chen1, Robert Newton2, Paul Griffin2,3

  • 1Harold & Inge Marcus Department of Industrial and Manufacturing Engineering, The Pennsylvania State University, University Park, Pennsylvania, 16802, USA. q.chen@psu.edu.

Health Care Management Science
|August 6, 2025
PubMed
Summary
This summary is machine-generated.

Opioid settlement funds require fair distribution to local governments for community remediation. This study introduces new quantitative measures for fair allocation, identifying optimal policies that outperform existing methods.

Keywords:
DisparityFairnessFrontierInterpretabilityOperations researchOpioid epidemicResource allocation

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Area of Science:

  • Public Health
  • Health Policy
  • Data Science

Background:

  • Opioid settlement funds are allocated to local governments for epidemic abatement.
  • Ensuring fair distribution of these funds across diverse county needs is a significant challenge.
  • Existing literature lacks empirical methods to quantify allocation fairness.

Purpose of the Study:

  • To define and empirically quantify fairness in opioid settlement fund allocation.
  • To develop evidence-based policies for equitable distribution of settlement funds.
  • To introduce novel allocation fairness measures: deviation and maximum regret.

Main Methods:

  • Formulated fair settlement allocation as convex optimization problems.
  • Defined two novel allocation fairness measures: deviation and maximum regret.
  • Applied an analytical framework to a Pennsylvania case study using real-world data.

Main Results:

  • Identified frontiers of non-dominated allocation policies, outperforming alpha fairness and formula-based methods.
  • Demonstrated that rural, low-income, and lower health-ranking counties exhibit lower fairness.
  • Quantified the interpretability trade-off, noting a higher cost for maximum regret compared to deviation.

Conclusions:

  • The developed framework provides a data-driven approach to fair opioid settlement allocation.
  • Allocation fairness is demonstrably lower in vulnerable and underserved counties.
  • The study offers a pathway for more equitable distribution of opioid settlement funds.