Market forces can boost quality, lower costs.
Competitive market forces may do more to ensure healthcare quality than government regulatory attempts. Independent research can show that healthcare quality drives profits and increases market shares. Greater market shares increase volumes, and increased volumes can lead to lower costs per case. These improvements may better position providers for payer contract negotiations, especially as payers are encouraging providers to assume more risk. Ultimately, however, a public more informed about costs and outcomes may be necessary for market forces to reduce national average costs per case.
Lexecon Health Service, Chicago, IL.
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Reepmeyer
D003363:Cost Control / Q000379:methods; D004465:Economic Competition; D005377:Financial Management, Hospital; D017048:Health Care Costs; D009874:Operations Research; D017063:Outcome Assessment, Health Care / Q000191:economics; D011787:Quality of Health Care; D014481:United States; D014600:Utilization Review / Q000191:economics