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Comparison shopping is limited in self-pay markets

Physician Practice Advisor, February 7, 2007

When patients pay the full cost of medical care out of pocket, they often rely on word-of-mouth recommendations. They usually do not thoroughly compare options to find the lowest-cost, highest-quality care available, according to a study by the Center for Health System Change (HSC).

Researchers examined self-pay markets such as LASIK, in vitro fertilization, cosmetic rhinoplasty, and dental crowns. Based on interviews with industry experts, providers, professional associations, and regulators, researchers concluded that comparison shopping was limited and would be even more difficult for services covered by health insurance, where the need for care is often more urgent and complex.

"Unlike shopping for a car or going to a restaurant, there is no easily-obtained 'list price' or menu of medical services," Jill Yegian, director of Research and Evaluation at the California HealthCare Foundation, said in an HSC press release. "We commissioned this research to highlight the disconnect between consumers' growing financial responsibility for medical care and the lack of easily accessible cost and quality information to guide decision-making."

For more information about the HSC study, click here.

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