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Healthcare in 2022 Will Be Irrational

Daily Remedy by Daily Remedy
January 1, 2022
in Contrarian
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Healthcare in 2022 Will Be Irrational

We consider progress in healthcare as a march towards efficiency.

We strive for greater access to healthcare, better patient outcomes, and lower costs of care – all defined through a series of metrics, some clinical and some financial, all in service of efficiency.

But efficiency can only go so far. Eventually efficiency erodes into our behavior as patients. And when the yolk of efficiency curtails what we perceive to be our fundamental liberties, the march towards efficiency will have ended. It is that simple – and that irrational.

Most patients at risk of diabetes know to monitor their diet and remain physically active. Yet most do not maintain the behaviors necessary to stave off diabetes. As a result, diabetes is a commonly diagnosed condition in the United States.

It is also called a lifestyle disease, implying that certain lifestyles predispose patients to diabetes. Behavioral choices that many diabetics engage in that are harmful for their health. While behaving in ways that worsen a disease may seem irrational, it is also what makes us who we are.

Many families and cultures are defined by traditions of holidays and celebratory meals. Most of these traditions involve unhealthy behavior. But hardly anyone would suggest that we should stop celebrating and adhere steadfastly to a regimented diet. Yet this would be the ideal course of action. And to encourage otherwise would be irrational.

From this perspective, irrationality and efficiency are opposites in healthcare. In the march towards efficiency, irrationality is sometimes seen as an impediment – something to overcome. In recent years, we have attempted to make healthcare efficient through a slew of technological and financial innovations, advancing healthcare at a pace never seen before.

But it has not made healthcare efficient. For that, we need behavioral changes that we are simply not willing to make. We want to be irrational – at the cost of efficiency.

So far we have avoided directly addressing the issue, conveniently ignoring irrational behavior in the name of healthcare innovations as we march along the path of efficiency. But now we have come to where it is directly limited by irrationality.

In chemistry, complex reactions are defined by its rate limiting step. If we apply this analogy to healthcare, we would define healthcare by irrationality as it is the rate limiting step towards efficiency. Therefore, the value of any novel innovation or technology intended to make healthcare more efficient will be defined through the lens of irrationality.

We currently look at irrationality as implicit to healthcare – something to acknowledge but not necessary to directly address. In 2022, we must look at irrationality as an integral aspect of patient behavior and work to address it head on – discuss it directly with patients.

Currently, most current efforts that focus on behavioral change fall in the realm of patient education. Traditionally, this has meant discussing common symptoms and treatments for chronic diseases while raising awareness – with the goal of making patients behave in more health conscious ways. Unfortunately, this has proven not to work.

Despite the increasing prevalence of healthcare information and resources for patient education, patients continue to behave in irrational ways. Increasing access to patient information has not limited irrational behavior. We must stop assuming the two are related – patient education does not affect irrational patient behavior. We need new ways to study and address irrational behavior.

Fortunately, marketing psychologists have studied irrationality in consumer behavior for decades. In fact, some of the most famous marketing campaigns targeted irrational behaviors – by targeting irrational emotions and thought patterns in consumers.

It makes no sense to purchase a thousand dollar phone every few months, yet Apple has become one of the most profitable companies in the world by ritualizing irrational purchasing habits.

As counterintuitive as it may seem, healthcare must directly address irrational patient behaviors to implement the behavioral changes needed to become efficient.

We will face barriers when initially focusing on irrational patient behaviors. Some will say it is unethical to encourage behavioral changes in such ways. But eventually we will realize that patients are motivated by irrational emotions and thoughts, not by patient education or healthcare information.

Once we realize what truly motivates patients and encourage behavioral changes along those lines, healthcare will continue its march towards efficiency.

But for now we remain in a standstill – waiting until we learn that for healthcare to become efficient, it must become irrational.

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Daily Remedy

Dr. Jay K Joshi serves as the editor-in-chief of Daily Remedy. He is a serial entrepreneur and sought after thought-leader for matters related to healthcare innovation and medical jurisprudence. He has published articles on a variety of healthcare topics in both peer-reviewed journals and trade publications. His legal writings include amicus curiae briefs prepared for prominent federal healthcare cases.

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Videos

Most employers are unknowingly steering their health plans toward higher costs and reduced control — until they understand how fiduciary missteps and anti-competitive contracts bleed their budgets dry. Katie Talento, a recognized health policy leader, reveals how shifting the network paradigm can save millions by emphasizing independent providers, direct contracting, and innovative tiering models.

Grounded in real-world case studies like Harris Rosen’s community-driven initiative, this episode dives deep into practical strategies to realign incentives—focusing on primary care, specialty care, and transparent vendor relationships. You'll discover how traditional carrier networks are often Trojan horses, locking employers into costly, opaque arrangements that undermine fiduciary duties. Katie breaks down simple yet powerful reforms: owning your data, eliminating conflicts of interest, and outlawing anti-competitive contract clauses.

We explore how a post-network framework—where patients are free to choose providers without restrictive network barriers—can massively reduce costs and improve health outcomes. You'll learn why independent, locally owned providers are vital to rebuilding trust, reducing unnecessary procedures, and reinvesting savings into the community. This conversation offers clarity on the unseen legal landmines employers face and actionable ways to craft health plans built on transparency, independence, and aligned incentives.

Perfect for HR pros, benefits advisors, physicians, and employer leaders committed to transforming healthcare from the ground up. If you’re tired of broken healthcare models draining your budget and frustrating your staff, this episode will empower you to take control by understanding and reshaping the very foundations of employer-sponsored health. Discover the blueprint for smarter, fairer, and more sustainable benefits.

Visit katytalento.com or allbetter.health to connect directly and explore how these innovations can work for your organization. Your path toward a healthier, more cost-effective future starts here.

Chapters

00:00 Introduction to Employer-Sponsored Health Plans
02:50 Understanding ERISA and Fiduciary Responsibilities
06:08 The Misalignment of Clinical and Financial Interests
08:54 Enforcement and Legal Implications for Employers
11:49 Redefining Networks: The Post-Network Framework
25:34 Navigating Healthcare Contracts and Cash Payments
27:31 Understanding Employer Health Plan Structures
28:04 The Role of Benefits Advisors in Health Plans
30:45 Governance and Data Ownership in Health Plans
37:05 Case Study: The Rosen Hotels' Health Model
41:33 Incentivizing Healthy Choices in Healthcare
47:22 Empowering Primary Care and Independent Providers
The Hidden Costs Employers Don’t See in Traditional Health Plans
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