Economics for Healthcare ManagersCASE 17.3Changing Consumer Information t cards are everywhere,"...

Question

Economics for Healthcare ManagersCASE 17.3Changing Consumer Information t cards are everywhere," said Kai. "Quality repor "Soe of the early efforts were i-n e real ciunkers, but most look pretty sensible now. It makes sense to offer consum_ their ignorance. A lot of the report cards emphasize clinical issues, but ers information instead of protecting them from the consequences ofsome look at courtesy and customer service. The advantages of report cards are immense. Physicians and patients get systematic that helps them choose specialists and hospitals. Providers have an incentive to improve performance • areas they might have overlooked, and those who cannot compete are likely to drop out of the market. Quality report cards have no downside. Setting up elaborate pay-for. performance schemes may not even ben ecessary. Fear of the fickle consumer may be incentive enough." "While like the idea of report cards," replied Leslie, "research-ers have found little evidence that they have a significant impact. in principle, report cards may push out tow quality firms, induce entry by high quality firms, or encourage existing firms to improve quality, but the evidence is far from compelling, as Dranove and Fin argued in 2010. Epstein noted in 2010 that study after study has found that report cards seem to have modest impacts on referrals and market share probably because referring physicians already steer patients to higher her quality •providers. I like the idea of public reporting of price and quality data, but it's hard to make the case that report cards have had much of an effect." "Whoa," replied Kai. "I think you are getting confused. Most doc-tors and hospitals provide comparable levels of service. Only a few fall short of the mark. The goal is to improve population outcomes by steering patients away from those providers or getting the providers to improve. A few patient switches are enough to move market share, and even if we can't show clearly that report cards work, everyone is improving. Where we have report cards, we see better performance. That's enough for me."0°111 ci Iv° Jac' P°e5 • or Pr 0111Yr! 11111:1 gel a 01(ets k 8N1 ets , is atior tie 're Pa' m oltn .a0) alt XXXXXXXXXX5sforr ror theil tegulati managf sce theDiscussion questions: • What evidence can you find that report cards have improved quality? • By what mechanisms could report cards improve reported market Outcomes?(continued)

David · Accepted Answer

1
Discussion Questions  
1. The relevant evidences highlighted in the given case study for the claim that the report 
cards have enhanced the quality are outlined below: 
 Usage of report cards is very popular  
 Almost all the hospitals, nursing centres and patients are using report cards  
 Reports cards also comprise essential information, customer service features, which 
indicates that the firms are able to monitor and fast-track performance improvement 
process  
 It has been found that report cards also play a pivotal role in enhancing the market shares.
2. The key mechanism, which can define that report cards have the tendency to improve the 
market shares are as given below (Kongstvedt, 2013). 
 The business of low quality firm can diminish rapidly if they do not maintain quality. The 
reason behind this can be viewed with the help of report card. Customers, doctors and the 
market leaders could have the tendency to compare the standard of the respective firms 
with the others in terms of quality, service, price and so on.  
 Report cards are available to all people that would help the competitors to compare their 
services with the other firms and improve the quality. This process can enhance the 
profitability of a firm but can also push a firm into bankruptcy.
3. Yes, the scarcity of the scientific evidence on the effectiveness of the report card matters 
because a report card is an open disclosure document regarding the performance of the 
healthcare firm, which generally involves the information about various deceased, their 
2
adverse implications and complications or mortality rate. The particular treatment 
available or adopted by the percentage of people is also highlighted in the report cards 
and thus, the scarcity of scientific evidence does leave a significant mark (DoJ & FTC, 
2004).
4. This is a general process of attracting the patient followed by the healthcare firm. Most of 
the physician or hospitals are publishing report cards (detailed information about their 
services and specialists) which indirectly results in increase in the number of customers 
and could create customer loyalty.

Economics for Healthcare Managers CASE 17.3 Changing Consumer Information t cards are everywhere," said Kai. "Quality repor "Soe of the early efforts were i-n e real ciunkers, but most look pretty...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment