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Nov 10, 2009
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.
2 Responses to “Why We Have a Quality Problem”
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Helium
November 10th, 2009 at 3:18 pm
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.
November 10th, 2009 at 3:49 pm
The more I think about it, the more I think that Goodman’s theorem is correct. Is it published anywhere?