Risk and risk-tolerance

And its dramatic impact on the costs of healthcare.  

Make no mistake, risk plays an important role in the cost of health care and it does so in at least two related ways. At some point during the recent debate about how America will deal with healthcare most people have heard that medical malpractice plays a role in the costs of care. Of course, the process of litigation (attorneys, expert witnesses, etc.) all cost something but the more significant costs are those attributed to the practice of so-called "defensive medicine". That is just another way of saying, "Mrs. Smith, in my clinical opinion this test is unnecessary because there is a minuscule chance that you actually have the problem that it is intended to detect. Nonetheless, should you prove to be unlucky enough to have this disease, I am afraid that you will sue me and that I might lose that lawsuit if I did not do everything possible."... continue reading...