Question

why Monte Carlo Simulations model is important for decisions making in the healthcare Systems?

Answer 1

Decision making in health care system becomes very difficult due to risk and uncertainly in the environment. In this scenario, Monte Carlo simulation helps bring information as well as different probabilities of occurrence of different scenarios to the management that can help them take more accurate decisions. Not using it, there is a scope of making erratic judgement as there are many random variables in the environment that are affecting the health care system and its functioning. Hence, it is Monte Carlo simulation that can effectively deal with these variables and perform those computations that cannot be done the managers in the health care system by themselves. So, it is important as it plays the role of facilitator.

For example, in the present scenario of COVID-19 pandemic, it is very unpredictable and uncertain to fairly estimate the number of cases, death toll and resources required to deal with it, for the health care system. Then, it is mote carlo simulation that is used to help managers takes informed decisions and make fair estimates of the future needs of resources and capabilities.