System Dynamics Modeling to Rethink Health System Reform

The Rethink Health Dynamics Model represents the complex dynamics of a regional health system in the United States and has been calibrated for more than 10 regions using nationwide and local data. When testing single interventions, the simulated improvement in system performance is often less than desired. By experimenting with combinations of interventions, the authors have identified recurring reasons for underperformance or intervention pitfalls. Here they discuss four common pitfalls and possible ways to overcome each with additional intervention. The pitfalls include (a) trying to cut costs without changing payment incentives; (b) depleting available funds without securing sustainable financing; (c) trying to achieve greater equity through service delivery without building capacity to meet greater demand; and (d) missing the opportunity to achieve multiple goals simultaneously through the use of mutually supporting interventions. The chapter illustrates each pitfall and proposed solution with causal feedback diagrams and simulation output graphs.