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Info and Chapters
Decision Analysis for Healthcare Managers
Farrokh Alemi, PhD
David H. Gustafson, PhD

Chapter 1: Introduction to Decision Analysis
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Companion Items

Learning Tools
Download slides on an introduction to decision analysis
Listen to a narrated presentation on an introduction to decision analysis
Websites of Interest
Glossary of commonly used terms in medical decision making
Article on how to use clinical decision analysis
Annotated references on decision theory and uncertainty compiled by Peter Wakker
Five articles on how to perform a decision analysis
List of Organizations
Society for Medical Decision Making (SMDM)
Decision Analysis Society
Institute for Operations Research and the Management Sciences (INFORMS)
Society for Judgment and Decision Making (SJDM)
Society for Mathematical Psychology (SMP)
International Society for Bayesian Analysis (ISBA)
American Statistical Association (ASA) Section on Risk Analysis
European Association of Decision Making (EADM)
International Society for Multiple Criteria Decision Making (MCDM)
Society for Risk Analysis
ASA Section on Bayesian Statistical Science
Association for Uncertainty in Artificial Intelligence (AUAI)
American Risk and Insurance Association (ARIA)
Public Choice Society
Decision Sciences Institute
Additional Readings
Coughlin, M. T., and D. C. Angus. 2003. “Economic Evaluation of New Therapies in Critical Illness.” Critical Care Medicine 31 (1): Suppl. 7–16. The article reviews the application of decision analysis in economic evaluations of new therapies. Elements of a cost-effectiveness analysis are also discussed.
Frisch, D., and R. T. Clemen. 1994. “Beyond Expected Utility: Rethinking Behavioral Decision Research.” Psychological Bulletin 116 (1): 46–54. This article evaluates the use of subjective expected utility (SEU) theory in psychology as a means for evaluating the quality of people’s decisions. Contrary to this theory, the authors argue that to evaluate the quality of a decision, researchers need to first identify decision processes that lead to judicial and timely results.
Hatcher, S. 1995. “Decision Analysis in Psychiatry.” British Journal of Psychiatry 166 (2): 184–190. This article considers the applicability to psychiatry of a quantitative approach to making difficult decisions. The article provides an example of how decision analysis could be used in psychiatry.
Keefer, D. L., C. W. Kirkwood, and J. L. Corner. 2004. “Perspectives on Decision Analysis Application, 1990–2001.” Decision Analysis 1 (1): 4–22. This article is a synopsis of key applications of decision analysis in the 1990s. Though there are few healthcare examples provided in this article, it is highly recommended reading for students who want to see many examples.
Kleinmuntz, B. 1990. “Why We Still Use Our Heads Instead of Formulas: Toward an Integrative Approach.” Review. Psychological Bulletin 107 (3): 296–310. The article argues for the use of systematic decision models over intuition in clinical decisions. While the article focuses on clinical issues, it provides a reasonable articulation of issues that managers face when analytical approaches do not agree with their intuitions.
Paton, C. R. 1999. Review of Evidence-Based Healthcare: How to Make Health Policy and Management Decisions, by J. A. Muir Gray, and Evidence-Based Medicine, by Lesley Grayson. BMJ 318 (7177): 201. This article reviews two publications concerning evidence-based healthcare decisions. The author discusses how management decisions can benefit from decision analysis.
Sachdeva, R. C. 2001. “Measuring the Impact of New Technology: An Outcomes-Based Approach.” Critical Care Medicine 29 (8): N190–195. This article examines the evaluation of new technologies. Decision analysts are often called upon to model technology purchases. This article can help the analyst to think through relevant issues.