Why We Have a Quality Problem

In a survey of 1,000 U.S. hospitals, just half the boards rated quality of care as one of their two top priorities. Only 44% reported that quality of care was important for evaluating the performance of the chief executive officer (CEO).

Remember Goodman’s Theorem: If providers don’t compete on price, they don’t compete on quality either.

Comments (2)

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  1. Devon Herrick says:

    Hospitals don’t complete on quality because high quality doesn’t pay them any more; and poor quality doesn’t compensate them any less. Indeed, hospital-acquire infections (e.g. poor quality) actually pays better because hospitals often get paid to fix their mistakes.

  2. Ken says:

    The more I think about it, the more I think that Goodman’s theorem is correct. Is it published anywhere?