Back to Evaluating Value-Based Care

Module 1

The Evaluation Problem

Why measuring whether a program worked is genuinely hard: the counterfactual, confounding, and what 'worked' even means.

3 lessons About 14 min

By the end of this module, you will be able to:

  • Explain why every claimed effect rests on an unobservable counterfactual
  • Identify confounding in a comparison between program participants and non-participants
  • Specify the aim and the perspective implied by any claim that a model worked
  1. The Counterfactual Every evaluation is a comparison against something that never happened. Understanding that impossible comparison is the whole game. About 5 min
  2. Correlation Is Not Causation The oldest warning in statistics is the one most often ignored in health policy. This lesson covers confounding and why it fools smart people. About 5 min
  3. What 'Worked' Means A model can succeed and fail at the same time, depending on the question. This lesson pins down what you are actually asking before you read an answer. About 4 min

Module quiz

Answer all questions to see your score.

1. What is the 'counterfactual' in an evaluation?

2. Program participants had lower costs than non-participants. Why might that not prove the program worked?

3. A model improves quality but produces no net savings. Did it 'work'?