Game theory is a way to analyze strategies for competitive situations where the outcome of a participant’s choice of action depends on the actions of other participants. The authors point out that 1.5 percent of the $4 trillion spent on healthcare in the United States is for durable medical equipment, and O&P is a portion within that, not to mention the governmental lobbying power afforded to the bigger players.
As part of the explanation of how game theory would work in a reimbursement model, the authors introduce an example of two doctors choosing which treatment to prescribe. Treatment 1 costs $900, and Treatment 2 costs $1,000. What reimbursement consequences might result if the doctors choose the same treatment or different treatments?
As part of the stakeholder perspective paper, the authors make a call to action to mitigate the disadvantage faced by small businesses, such as O&P providers, in competitive bidding and contract negotiations. They suggest that O&P professional organizations explore ways to take advantage of game theory in support of the profession.
The open-access paper, “A Brief Introduction To Game Theory And Its Potential Implications For The Economics Of Orthotics & Prosthetics,” was published in the Canadian Prosthetics & Orthotics Journal.
