Do markets respond to quality information? The case of fertility clinics.

Journal Article (Journal Article)

Although policymakers have increasingly turned to provider report cards as a tool to improve health care quality, existing studies provide mixed evidence on whether they influence consumer choices. We examine the effects of providing consumers with quality information in the context of fertility clinics providing Assisted Reproductive Therapies (ART). We report three main findings. First, clinics with higher birth rates had larger market shares after the adoption of report cards relative to before. Second, clinics with a disproportionate share of young, relatively easy-to-treat patients had lower market shares after adoption versus before. This suggests that consumers take into account information on patient mix when evaluating clinic outcomes. Third, report cards had larger effects on consumers and clinics from states with ART insurance coverage mandates. We conclude that consumers respond to quality report cards when choosing among providers of ART.

Full Text

Duke Authors

Cited Authors

  • Bundorf, MK; Chun, N; Goda, GS; Kessler, DP

Published Date

  • May 2009

Published In

Volume / Issue

  • 28 / 3

Start / End Page

  • 718 - 727

PubMed ID

  • 19328568

Electronic International Standard Serial Number (EISSN)

  • 1879-1646

International Standard Serial Number (ISSN)

  • 0167-6296

Digital Object Identifier (DOI)

  • 10.1016/j.jhealeco.2009.01.001

Language

  • eng