Tuesday, December 23, 2008

Tuesday, December 16, 2008

The Prisoner's Dilemma: Medical Game Theory

In light of a recent opinion piece, commented on by others, it deserves to be shown, through game theory, how two groups of physicians (specialists and generalists) are being pitted against each other by a third party, namely the federal government through CMS through the RVS Update Committee (RUC).

Game theory helps to predict and explain interactions in social decision-making. The classical problem is the "Prisoner's Dilemma" wherein two prisoners are pitted against each other by a third party seeking to expose the crimes of the imprisoned through betrayal of each other.

The incentive for prisoner A to betray prisoner B is the possibility that if the betrayer (prisoner A) is alone in betraying the other, prisoner A will go scot-free while the other prisoner receives the full prison term. If both prisoners betray each other, they both go to prison, but both receive a shorter prison term.

Do physicians cooperate or do they betray each other?




Generalists fight RUCGeneralists betray
Specialists fight RUCThe broken system is removedGeneralists' pay increased
Specialists suffer
Specialists betrayGeneralists suffer
Specialists' pay increased
RUC is maintained
All physicians suffer


Rather than cooperating with each other to get rid of a corrupt payment system which favors certain groups of physicians versus others in a budget-neutral fashion, these groups of physicians fight each other to get a larger piece of an increasingly smaller pie.

The only real winner is the government at the expense of all physicians.

Unlike the original prisoner's dilemma, the medical game is not over yet. Physicians still have time to set aside past wrangling over the payment system and to fight the RUC.