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The Unintended Bias of Data Driven Decisions

Are data driven decisions influenced by Confirmation Bias?

Data driven decisions are valued because of the implied impartiality - no gut feelings or emotions.  Just pure facts.  Is data really impartial?

No.  Data is created for a purpose.  There is not another dimension where data free of bias is plucked from and used.  Since data is created for purpose, there is an inherent inertia towards that purpose.  

Take Health Insurance as an example.  Claim auditing is done by all insurance companies.  Claims that were paid incorrectly are identified and the money recovered.  As long as money continues to be recovered, the data confirms the existing approach works. The conclusion - keep doing what we are doing because it works.  But are all recoveries being discovered? 

This is how data driven decisions may be unintentionally reinforcing the status quo.  Continuing the status quo appeals to our  Confirmation Bias - a tendency to look for what supports pre-existing beliefs. 

It is also why change is hard.  

Confirmation Bias can be overcome.  It requires bringing in outside data, conducting research, applying new techniques, a willingness to question the status quo, and most importantly - the capacity to do all of it.

Logo_variation_COr  you could contact Reliable Software instead?  Our analytics platform - Lia - can be the launchpad for improved Payment Integrity and greater claim recoveries.  Our unique approach will supplement what you already do  and improve your bottom line. 

Are you missing what you cannot see?  Find out - 


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