An example of the creative use of "Game Theory" approach to develop a managed care strategy for a multi-hospital system in the southwest United States -- resulting in 85% increase in hospital net revenue per inpatient day over 7 years.

1. Using Game Theory to Gain The “Upper Hand” During Contract Negotiations HFMA Hawaii Annual Conference Pacific Beach Hotel, Honolulu, Hawaii Edward M. “Mickey” Duke President of E.M. Duke & Associates, LLC C.E.O. of Oasis Health System, LLC [email_address] 702/493-0606 April 22, 2009

3. The 1996 book Co-opetition (by Adam Brandenburger and Barry Nalebuff, published by Currency Doubleday) helped to clarify two basic business tenets that are often underestimated in their value to managed care contracting: You don’t have to destroy your competition to win in business -- know when to cooperate with your competitors and when to compete Game theory helps you to see all of the players and relationships that affect the game that your business is playing -- it allows you to change the game to one that you can win, regardless of whether your actions cause your competitors to lose or to win (benefit) as well

13. “ It’s never just one thing… “ Dennis Quaid, in “The Rookie”, responding to his son when asked if the reason that he quit the Major leagues was because of his arm injury … and in Managed Care contracting, we all know it’s also “never just one thing”… but Game Theory offers the opportunity to coordinate multiple “things” to methodically create workable strategies with generally predictable outcomes, and accomplish an overall business goal.

18. With this in mind, Let’s take a look at how I used game theory in Las Vegas, Nevada…