P4P Quality

How do consumers perceive low priced health care?

Is it a bargain?  Or do low prices represent low quality?  Or is cost independent of quality?  To try to answer this question Phillips, Schleifer, and Hagelskamp (2016) conducted a nationally representative survey to investigate whether consumers believe that price and quality are associated.  They found that:

Most Americans (58–71 percent, depending on question framing) did not think that price and quality are associated…

This is food for thought as many value-based health care programs aim to provide information on health care quality and cost to patients.

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