35. Are More Expensive Hospitals Better?

Bapu Jena, an expert on healthcare pricing, joins researcher Steve Levitt to explore the complex link between price and quality in hospitals. They discuss how biases in price perception affect patient choices, drawing insights from an intriguing wine tasting experiment. The conversation reveals challenges with price transparency in healthcare, emphasizing why many prioritize quality over cost. Jena shares findings on market competition's impact on patient outcomes, painting a nuanced picture of what truly drives the effectiveness of healthcare services.