Dive Brief:
- A report published in the current issue of Health Affairs examines whether consumers perceive healthcare price and quality to be associated, and whether the framing of such questions impacts consumers’ responses.
- The researchers found the majority of Americans (58–71%, depending how the question was framed) did not believe price and quality to be associated. However, that left a sizable minority who did believe there to be an association (21–24%) or who were unsure (8–16%).
- The study found consumers who had compared prices to be more likely than those who hadn't to perceive an association between price and quality.
Dive Insight:
The issue of a perception of a price/quality connection could have tremendous influence on the outcome of efforts to improve price transparency and to encourage healthcare consumers to compare prices, the researchers suggest.
The study notes some healthcare stakeholders have indicated concern that price information could lead consumers to select high-priced care rather than low-priced care if they believe price to indicate quality, potentially driving healthcare costs up rather than down.
"Understanding how consumers perceive the relationship between price and quality is important because using price as a proxy for quality could drive up spending without a commensurate increase in value," the researchers wrote. Given their finding that most people do not believe price and quality to be associated, the availability of price information will not necessarily prompt patients to select higher-cost care. However, due to the large minority that do perceive a connection, the researchers noted it is important to report quality information alongside price information.
The researchers also suggested price transparency initiatives consider the differences in perceptions among consumer subgroups, to help ensure success of individual initiatives.
They add that regarding price-comparerers being more likely to perceive a price/quality connection, it's unclear whether there is a causal relationship, whether such perceptions are justified, and how to address or counter them.