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Good Cost, Quality Information Translates to Good Choice of Health Provider

When asked to choose a healthcare provider based only on cost, consumers choose the more expensive option, according to a new study funded by the Agency for Healthcare Research and Quality (AHRQ) that appears in the March issue of Health Affairs.

The study found that consumers equate cost with quality and worry that lower cost means lower quality care. But higher costs may indicate unnecessary services or inefficiencies, so cost information alone does not help consumers get the best value for their health care dollar, according to the study.

The study found that when consumers were shown the right mix of cost and quality information, they were better able to choose high-value healthcare providers—defined as those who deliver high-quality care at a lower cost.

Healthcare consumers want to visit high-quality doctors and hospitals, and many public report cards are available to help them compare providers. However, few report cards include information on cost, and there has been little scientific evidence to guide the presentation of that information to help consumers choose high value providers.

A team of researchers, led by Judith H. Hibbard, DrPH, at the University of Oregon in Eugene, studied 1,400 employees in a randomized experiment to find out how they responded to different presentations of quality and cost information. When providers were clearly identified as high quality, cost had less influence on consumers’ decisions and consumers were more likely to choose a provider with lower cost but better quality than a high-cost provider.

“This study has important implications for the more than 150 public reports on physician and hospital care,” says AHRQ Director Carolyn M. Clancy, MD. “It’s not simply a question of providing information on cost, but providing it in a way that is integrated with quality scores.”

The study explored a number of ways to present cost and quality information effectively, using combinations of symbols such as dollar signs and stars, specific information such as dollar amounts and percentages, and labels such as “appropriate use” or “better.” Consumers were more likely to choose high-value providers when presented with strong, unambiguous quality and cost information. In addition, a check mark indicating a “high-value” provider, along with the cost and quality information, also helped consumers use the information to make high-value choices. Given strong quality signals, consumers were also more confident in their choices.

— Source: Agency for Healthcare Research and Quality