This thesis explores how innovative behavioural and virtual environment simulations could benefit healthcare and health policy. In the first half of the thesis I review the use of behavioural simulations in healthcare and contextualise an evidence-based approach for development and analysis. This approach is informs the successful design and completion of two simulations - The Crucible and Lateral Play. The Crucible was designed to improve leadership skills and understanding of the Health and Social Care Act amongst clinicians. Lateral Play was designed to aid organisational development of Imperial College Health Partners, the Academic Health Sciences Partnership in North-West London. Detailed analysis demonstrated, for the first time, the measurable positive effect of Behavioural Simulations on participant learning and behaviours. In the second half of the thesis I examine and demonstrate the potential for virtual world simulations to enhance major incident preparation, reviewing the evidence behind major incident training the potential benefits of using virtual world environments via a user-needs analysis and expert advisory group. I describe the successful design, development and assessment of three virtual world scenarios for multidisciplinary major incident training in the context of a bomb blast. Face and content validity is demonstrated and performance assessed in both technical and non-technical skills. Finally, I determine the feasibility of utilising a virtual trauma scenario for long-distance training between the UK, Canada and Southern Africa. The thesis concludes with an overall discussion of the pertinent findings, limitations and implications for future practice and research.