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Information and sorting in the market for obstetrical services
1University of Texas at Arlington, TX 76019, USA. dgrant@uta.edu
Health Economics
|February 9, 2005
Summary
Consumer information on healthcare quality, like physician cesarean section rates, has limited value. Its usefulness depends on accuracy and how physicians are organized, often being too small to influence patient choice.
Area of Science:
- Health economics
- Consumer behavior research
- Statistical modeling
Background:
- Assessing the value of consumer information is crucial for healthcare quality improvement.
- Understanding how consumers use information impacts healthcare provider choices.
Purpose of the Study:
- To develop a methodology for valuing consumer information on healthcare provider quality.
- To apply this methodology to physician predispositions for cesarean section deliveries.
Main Methods:
- Utilized a statistical model and a partial equilibrium economic search model.
- Developed a framework to appraise the value of consumer information.
- Applied the model to data on physician cesarean section rates.
Main Results:
- Information value is proportional to its accuracy, influenced by consumer search and preferences.
- Information production can exhibit economies of scale, informing efficient production strategies.
- Physician sorting in hospitals enhances information value, but heterogeneity attenuates it.
Conclusions:
- The value of healthcare quality information may be small, explaining low consumer utilization.
- Methodology provides insights into efficient information production and its impact on healthcare markets.