July 14, 2019
In this episode, we spoke with Matt Loper, CEO and Co-Founder of Wellth, an app that helps people with chronic conditions improve their health through better adherence to their prescriptions. Matt’s company works with healthcare providers and insurers to provide rewards for patients who need small behavioral interventions to stay on track.
Wellth does this by “giving” patients money at the start of each month to take their pills. To prove they’re on track, they use the Wellth app to take a photograph of their medicines in the palm of their hand. But every day that they miss, they are penalized in the form of fee, which nets them less money at the end of the month. This loss-contract model is gaining notoriety and it should be: Wellth discovered that positive incentives accounted for adherence rates around 60% while loss-contract models account for better than 90% adherence rates.
Matt is quick to point out that the science of behavior change is not like chemistry, where all the inputs and outputs can be measured and is easily replicable. Behavioral science, Matt argues, is much more complex and requires more rigorous testing.
In our grooving session, Kurt and Tim discuss loss contracts in greater depth and the complexities of the human condition.
Matt Loper: [email protected]
Kevin Volpp, PhD. Director, Center for Health Incentives and Behavioral Economics, Leonard Davis Institute: https://hcmg.wharton.upenn.edu/profile/volpp70/
Kevin Volpp’s group: https://chibe.upenn.edu/
Teresa Amabile: http://www.hbs.edu/faculty/publication%20files/12-096.pdf
Riding the Bike: http://blog.lanterngroup.com/?s=bike
Check out the Behavioral Grooves website: https://behavioralgrooves.com/
Fleetwood Mac – Rumors: https://en.wikipedia.org/wiki/Rumours_(album)
Stevie Nicks would be the IT girl today. https://en.wikipedia.org/wiki/Stevie_Nicks
Simon & Garfunkel https://en.wikipedia.org/wiki/Simon_%26_Garfunkel
Richard Prior – original, foul language comic. https://en.wikipedia.org/wiki/Richard_Pryor
Glass Animals. https://www.glassanimals.com/
Alabama Shakes. https://www.alabamashakes.com/
Childish Gambino. https://en.wikipedia.org/wiki/Donald_Glover
Kendrick Lamar. https://en.wikipedia.org/wiki/Kendrick_Lamar
Led Zeppelin. https://en.wikipedia.org/wiki/Led_Zeppelin
The Doors. https://en.wikipedia.org/wiki/The_Doors
Black Keys. https://en.wikipedia.org/wiki/The_Black_Keys
Kid Cudi: https://en.wikipedia.org/wiki/Kid_Cudi
"Loss Aversion" by Tim Houlihan & Kurt Nelson: https://www.youtube.com/watch?v=AyeRNVSWJAI&t=15s