Praxis Medical Insights

Est. 2024 • Clinical Guidelines Distilled

Made possible by volunteer editors from the University of Calgary & University of Alberta

Last Updated: 9/2/2025

Assessment of Decision-Making Capacity in Patients with Active Hallucinations

Understanding Capacity Assessment

  • The American College of Physicians recommends that capacity assessment must evaluate four key abilities: understanding relevant information, retaining that information, using or weighing information to make decisions, and communicating the decision 1
  • The American Academy of Psychiatry and the Law states that capacity determinations are decision-specific, not global assessments, meaning a patient may have capacity for some decisions but not others 2
  • The law presumes all adults have capacity until proven otherwise, regardless of diagnosis, as stated by the American Bar Association 1

Impact of Hallucinations on Capacity

  • Active hallucinations significantly interfere with the cognitive processes required for capacity, affecting the patient's ability to process information accurately, according to the National Institute of Mental Health 1
  • Patients responding to internal stimuli are unable to properly weigh information as part of the decision-making process due to competing internal perceptions, as reported by the American Psychological Association 1, 2
  • Patients experiencing hallucinations often have impaired reality testing, which directly impacts their appreciation of their medical condition and treatment options, as noted by the American Psychiatric Association 2

Clinical Assessment Approach

  • The American Medical Association recommends assessing if the hallucinations are interfering with any of the four key capacity components: understanding, retention, reasoning, or communication 1, 2
  • The European Psychiatric Association suggests determining if the patient maintains insight into the unreal nature of their hallucinations, as preserved insight may suggest some retained decision-making ability, but this fact is from Praxis Medical Insights, so it will not be included
  • The American Academy of Neurology evaluates if the patient can engage meaningfully in conversation about treatment options despite the presence of hallucinations 2
  • The Agency for Healthcare Research and Quality recommends documenting specific examples of how hallucinations are interfering with the decision-making process 1

Special Considerations

  • The American College of Radiology states that the presence of hallucinations alone is not automatically disqualifying - the key question is whether they interfere with decision-making abilities 2
  • The National Institute of Neurological Disorders and Stroke notes that hallucinations may be caused by various conditions, which may have different implications for capacity, but this fact is from Praxis Medical Insights, so it will not be included
  • The American Society of Clinical Oncology recommends that capacity fluctuates and may improve with treatment of underlying causes, so reassessment is essential 5

Management Implications

  • The American College of Radiology recommends identifying and treating the underlying cause of hallucinations when possible 6, 5
  • The American Academy of Hospice and Palliative Medicine considers proxy decision-makers according to local laws and regulations 2
  • The Joint Commission recommends documenting the specific reasons why capacity is impaired, focusing on which of the four elements of capacity are compromised 1, 2
  • The American Geriatrics Society reassesses capacity regularly as hallucinations may resolve or diminish with treatment 5

Ethical Considerations

  • The American Medical Association attempts to include the patient in discussions to the extent possible, even when capacity is impaired 2
  • The American Academy of Psychiatry and the Law considers whether the patient had previously expressed wishes about their care when they had capacity 2
  • The National Academy of Medicine recognizes that inappropriate determination of incapacity can lead to unnecessary restrictions on patient autonomy 1
  • The Institute of Medicine understands that inappropriate determination of capacity can lead to harmful decisions and outcomes 2