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Published on: September 10, 2018
Analysis & commentary: The trade-off among quality, quantity, and cost: how to make it--if we must
1Department of Health Care Management, Wharton School, University of Pennsylvania, Philadelphia, Pennsylvania, USA. pauly@wharton.upenn.edu
Abstract:
The Affordable Care Act, with its subsidies, demonstrations, commissions, and study groups, embodies a considerable amount of regulatory and policy pressure on markets to improve the quality of health care. However, it is possible that this government-led movement will lead to a lot of talk about quality but not necessarily much improvement. A better strategy may be found through "disruptive innovation," a market-driven approach that has balanced cost and quality in other industries. An example would be to provide lower-cost substitutes for some aspects of primary physician care, in the form of care at a retail clinic. Consumers might not perceive a clinic as a perfect substitute for physician care, but they might prefer the greater convenience and lower cost. Perhaps a little less quality for a lot less money might be acceptable to consumers and taxpayers, as we work to keep medical spending from siphoning off funds required for other needs.
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