Hello. Dr. Keith Smith with you – Surgery Center of Oklahoma. Thank you for joining me.
This is our dog, Jerry. Jerry is the best dog in the world – ever. Like, the best dog in the world, in the history of dogs – ever. Now, some of you may have an issue with my saying that. You may think you have the best dog in the world, ever in the history of dogs. And you would be right. How can you and I both be right?

If you take issue with me saying my dog is the best dog and you think yours is, you unconsciously, perhaps, are subscribing to this subjective theory of value. The value you place on your dog is very, very high. The value I place on Jerry is very, very high. See, he is the best dog.
If you go down the path of understanding this subjective theory of value, then you are on the road to understanding many things in the world all around us in a very different way. I’m speaking to the general public, but I’m also speaking to many physician colleagues who I think have a misunderstanding of value. And I’m also quite concerned that the government and some people in the industry are now using the term “value” as in “value-based care”. Value-based healthcare is an issue, and I think we need to understand our terms.

I would like to suggest that to understand value better, you consider this book: Economics in One Lesson by Henry Hazlitt. It is a classic, it is written for the layman, and it is the gateway to understanding economics. If you really want to go down the rabbit hole of understanding subjective value, then you will read Principles of Economics by Carl Menger, thought to be the father of Austrian economics.
We’ll talk more about value in other videos, and Jerry probably will make cameos there. Keep in mind, you may think you have the best dog, but I have the best dog. And we’re both right.

Thank you for joining me. I’ll see you next time.