The price–cost disconnect in healthcare: Negative consequences and recommended remedies

Abstract

Payers and providers have been forced to scrutinise costs more over the last five to ten years of vigorous healthcare reform; however, this increased attention to costs has not been reflected in pricing, and a price–cost disconnect leads to many deleterious consequences. This paper outlines the negative results of this disconnect and recommends several ways in which this gap can be corrected to create a more cost-efficient healthcare economy, one of the goals of the so-called Triple Aim of healthcare reform.