ASQ

Exclusive Content & Downloads from ASQ

Cost-Quality Tradeoff in Healthcare: Does it Affect Patient Experience?

Summary: [This abstract is based on the authors' abstract.] This study empirically investigates the effect of cost and average length of stay on experiential quality in healthcare. The author uses aggregate level data from 245 acute care hospitals operating in the state of California and performs ordinary least squares regression to test his hypotheses. Supporting the classic theory on cost-quality tradeoff, results show that hospitals do have a tradeoff between cost efficiency and experiential quality. Further, the author finds that hospitals with a higher average length of stay rate have, on average, lower experiential quality. In light of the recent move by Medicare to performance-based reimbursement, the author's results provide key insights to hospital administrators regarding cost-quality tradeoff and the tradeoff between achieving clinical quality and experiential quality outcomes.

Anyone with a subscription, including Site and Enterprise members, can access this article.


Other Ways to Access content:

Join ASQ

Join ASQ as a Full member. Enjoy all the ASQ member benefits including access to many online articles.

Subscribe to Quality Management Journal

Access this and ALL OTHER Quality Management Journal online articles. You'll also receive the print version by mail.

  • Topics: Customer Experience Management
  • Keywords: Health care, Healthcare industry, Patient Flow, Patients, Cost-benefit analysis, Least squares, Regression analysis, Centers for Medicare and Medicaid Services (CMS)
  • Author: Venkataraman, Sriram
  • Journal: Quality Management Journal