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In health care, most research shows no clear correlation between price and quality. When it comes to perceptions, whether you believe expensive care is better is mostly a function of how generous your insurance coverage is. For example, a recent study in HBR found that those with rich or comprehensive coverage tend to believe expensive providers are better, while people with more cost exposure believe the opposite. This confusion drives up cost in some cases and makes patients' health outcomes worse.
Today, too much variation exists in provider quality – which exacerbates this issue. For example, Morgan Health and Embold Health found wide variation in medication adherence and cesarean delivery (C-section) among providers within a geography, translating into variation in both health outcomes and cost.
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