Do Markets Respond to Quality Information? The Case of Fertility Clinics

Working Paper: NBER ID: w13888

Authors: M. Kate Bundorf; Natalie Chun; Gopi Shah Goda; Daniel P. Kessler

Abstract: Although policymakers have increasingly turned to provider report cards as a tool to improve health care quality, existing studies provide mixed evidence that they influence consumer choices. We examine the effects of providing consumers with quality information in the context of fertility clinics providing Assisted Reproductive Therapies (ART). We report three main findings. First, clinics with higher birthrates had larger market shares after relative to before the adoption of report cards. Second, clinics with a disproportionate share of young, relatively easy-to-treat patients had lower market shares after adoption versus before. This suggests that consumers take into account information on patient mix when evaluating clinic outcomes. Third, report cards had larger effects on consumers and clinics from states with ART insurance coverage mandates. We conclude that quality report cards have potential to influence provider behavior in this setting.

Keywords: Quality Information; Fertility Clinics; Market Share; Report Cards

JEL Codes: I11; I18; L15


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
clinics with higher birth rates (J13)market share (L17)
clinics with a higher proportion of young patients (J13)market share (L17)
public disclosure of quality information (report cards) (L15)market share (L17)
states with ART insurance coverage mandates (G52)consumer responsiveness to quality information (L15)

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