This chapter describes the economic model of ideal decision-making under uncertainty. It also outlines the economic theory of the value of information – when a decision-maker should incur time or money cost to obtain additional evidence. It contracts these two theories with the informal decision-making processes often used by mangers, based on their recent experience or expertise, as well as with an unqualified “evidence-based” model endorsed by government that requires full information before a choice can be made. It offers an extended discussion of Medicare’s choice to put its hospital readmissions reduction program in place based on imperfect and incomplete evidence about how financial penalties would affect hospital behavior and suggests how the decision could have been improved.