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Competing on quality can work well with fixed prices

Carol Propper quoted in today's Guardian on measures aimed to improve quality in the NHS.

The respected healthcare economist Carol Propper says it is precisely because price is transparent while quality is opaque that price competition has not worked well in either the US or the UK, where it was briefly applied round the edges of the internal market during the mid-1990s. By contrast, she says, competing on quality can work well with fixed prices.

Health service reform: Perils of the cut-price knife, Guardian, 23 February 2011

 

Carol Propper