Do Higher Priced Hospitals Deliver Better Care?

Surprise! Usually, No

Being admitted to a hospital with two standard deviations higher prices raises spending by 52% and lowers mortality by 1 percentage point (35%). However, the relationship between higher prices and lower mortality is only present at hospitals in less concentrated markets.
Receiving care from an expensive hospital in a concentrated market increases spending but has no detectable effect on mortality.


But we knew this along time ago.…
Is More Health Care Better Or Worse? Well, It Certainly Costs More
Even if you’re not a hardcore health care geek, you’ve probably heard that Medicare spends a lot more on patients treated in Miami and McAllen, Texas, than those cared for in Minneapolis or Sacramento, Calif.

For decades, the folks behind the Dartmouth Atlas of Health Care have documented wacky variations in how frequently different medical procedures are performed and how much money gets spent across the U.S. And the underlying question is: What are patients getting for the extra money?
“higher cost areas and hospitals don’t generate better outcomes than the lower-cost ones.”

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