Business Services Industry

No easy cure indeed

Chief Executive, The, Nov, 2004 by Josh S. Weston

Professor Michael Porter is correct in noting that the U.S. health care system spends double the per capita cost of other developed countries while achieving no better outcome in longevity or quality of life ("No Easy Cure," October). And he properly cites the primary cause: Current incentives encourage actors in the system to behave in ways that don't create value.

But Porter's solution of making available more data on cost versus quality seems naive. It is extremely unlikely that seriously ill patients would be informed, logical comparison shoppers. It is also unlikely that providers would drop costly defensive medical procedures in the face of malpractice suits and higher insurance premiums.

Josh S. Weston

Honorary Chairman

Automatic Data Processing

Roseland, N.J.

COPYRIGHT 2004 Chief Executive Publishing
COPYRIGHT 2004 Gale Group
 

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