The 'Pareto distribution'—or 80/20 rule—can be used to improve your health

The “Pareto distribution” is a mathematical phenomenon that basically says life is not fair.

It is a statistical principle that is applied to virtually all aspects of human life, including accounting, biology, chemistry, economy, engineering, medicine, physics, and social sciences. It is a law of the universe that says outcomes are not equal and are not distributed evenly. It is the main reason why communism doesn’t work. Too bad if you don’t like it. That is just the way it is.

This statistical anomaly is named after economist, engineer and sociologist Vilfredo Pareto, who, in 1906 while observing patterns in the distribution of wealth among people in Italy, observed that 20% of the people own and control 80% of all the land and wealth.

The principle was rediscovered and popularized by an American engineer who then applied it to many other observable facets of life.

Of course, in reality, the exact percentages in the Pareto distribution are variable to a point, but still largely unequal. For some things it can be 10% to 90%, 15% to 85% or 25 to 75%. But the point is still there—there is a natural inequality in the distribution of things in life.

There are many real-life examples of the Pareto distribution. Eighty percent of all retail sales are from 20% of all products. Twenty percent of people have 80% of all the world’s wealth. Eighty percent of all illegal activity is committed by 20% of criminals. Twenty percent of employees do 80% of all work. Eighty percent of car accidents are caused by 20% of all drivers. Twenty percent of input in business is responsible for 80% of output.

Examples of the Pareto distribution in health care and medicine are equally revealing. Twenty percent of the population accounts for 80% of all health-care spending. Eighty percent of health problems are caused by 20% of health conditions. Twenty percent of people consume 80% of all prescription drugs. Eighty percent of hospital admissions are caused by 20% of people.

The recognition of the occurrence of the Pareto distribution can be harnessed to make policies and decisions that change or modulate outcomes to a more desirable end result.

For instance, if you know that 20% of the population accounts for 80% of health-care spending, you can focus on reducing factors that lead to poor health in that group. Improving diet and lifestyle factors can reduce the financial burden of this group on the health care system. Factors like stopping smoking, changing illicit drug use patterns, reducing alcohol intake, promoting exercise and increasing consumption of healthy foods can reduce this enormous burden on the health care system.

Additionally, the same rationale can be used in reducing potential prescription drug overuse in the population that uses the most prescription drugs. This is not to say prescription drugs are not necessary, but a periodic review of patients on polypharmacy may be beneficial in targeting individuals who may not need specific drugs.

I have seen several elderly individuals who have been on 10 or more different drugs at one time. It was my professional opinion some of those drugs could be reduced or eliminated altogether.

If 20% of health conditions cause 80% of doctor and hospital visits, then focusing resources on the most common health illnesses can potentially reduce the burden of visits to family doctors, walk-in clinics and hospitals.

Identifying and promoting research and improved treatment for these conditions can reduce the financial burden of these patients on the health care system. Furthermore, 80% of health insurance claims are instigated by 20% of claimants, regardless of job, location or social status. That puts a huge burden on employers, business and the entire health care system.

Analysis of the distribution of the individuals, injuries and types of claims can be important in reducing future claims. Focusing on prevention can also ease the burden of health costs, resources and time. It can also ultimately improve the outcome favourably for the injured claimant.

If 80% of your stress is caused by 20% of your problems, then focusing your energy and problem-solving ability on those specific areas may be helpful in reducing your overall stress. The first step is to identify the problem or problems. That is usually easy, as most people have one or two major problems that use 80% of time and resources.

Focusing on the identified specific problem with 80% of your mental capabilities can lead to a potential solution.

You can exploit the reality of the Pareto distribution in your health and your life for your benefit. The realization of the 80/20 rule is the first step of harnessing this statistical anomaly.

You can then make informed decisions and modify behaviour to use this principle to your advantage.

The information provided in this article does not, and is not intended to, constitute medical advice. All information and content are for general information purposes only.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.