Healthcare Data Analytics: Methods of Matching Scarce Resources With Uncertain Patient Demand. The Optimal Cost Allocation for Cooperating Providers. Introduction into the Concept of the Shapley Value

Game theory is a theory for analyzing strategic interaction.Each participant / provider has to consider other participants' reactions and expectations regarding their own decisions, i.e., strategic interaction.By pooling resources, cooperating participants usually reduce the total joint costs and realize savings. The question arises is: How the realized savings should be shared ‘fairly’ between the collaborating participants?

The concept of Shapley value is one approach to this problem.

Reference: Kolker, A., “The Concept of the Shapley Value and the Cost Allocation Between Cooperating Participants”. In “Encyclopedia of Information Science and Technology, 4-th Edition.”IGI-Global, 2017, ch.182, pages: 2095-2107.

Webinar Jan 01 2026, Thursday 01:00 PM EDT 60 Minutes Intermediate Level Code: GRC0000329

  • The basics of the Mathematical Game Theory:Cooperative and non-cooperative games
  • Definitions of fairness and fair division
  • The problem of distribution the costs or savings for cooperating providers
  • The concept of the Shapley value: the ‘fair’ allocation of costs/savings between cooperating providers
  • A special simplified case of the Shapley value: application of an ‘airport landing fee’ approach
    Examples:
     - Cost of care for a medical case of acute care: 3-member providers group
     - Bundled payment: 4-member providers group
     - Joint center for diagnostic imaging – 4-member providers group
     - Joint dental clinic: 4-memebr dental providers group, and 10 dentists

Nursing Managers, Chief Nursing Officers, Directors and VP of quality and operations improvements of healthcare organizations interested in learning practical methods of data analytics for optimal cost allocation for cooperating providers and bundled payment.

Policymakers and payers have grown increasingly frustrated with fee-for-service payment system. Fee-for-service rewards volumes and encourages silos and fragmentation of care. There are a lot of efforts that seek to shift provider payments to value-based approaches that encourage quality improvement and cost reduction. Payment bundling is one such approach.

You should attend this webinar if you are interested in learning how the realized savings due payment bundling should be shared fairly between the collaborating providers.

Alexander Kolker
Alexander Kolker

Alexander Kolker holds a Ph.D. in applied mathematics. He is an expert in advanced data analytics for operations management, computer simulation and staffing optimization with the main focus on healthcare applications. Alexander is the lead editor and author of 2 books, 8 book chapters, 10 journal papers, and a speaker at 18 international conferences & webinars in the area of operations management and data analytics. As an adjunct faculty at the UW-Milwaukee Lubar School of Business, he developed and taught a graduate course Business 755-Healthcare Delivery Systems-Data Analytics. He worked 12 years for GE (General Electric) Healthcare as a Data Scientist and CT Detector design engineer, 3 years for Froedtert Hospital, the largest healthcare facility in Southern state of Wisconsin, and 5 years for Children’s Hospital of Wisconsin as a lead computer simulation and system improvement consultant.

Currently he is teaching a 12-sessions online course “Healthcare Operations Research and Management Science” for the UK, National Health System (NHS).

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