When Healthcare is a “Lemon”: Asymmetric Information and Market Failure

posted by David W. Johnson on March 27, 2015

Found in US, categorized in Healthcare

Tags: David Johnson healthcare patient health provider hospital over-treatment under-treatment information asymmetry HFMA

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Information asymmetry remains a fundamental challenge for most health companies; yet, there is nothing more important than engaging customers in their medical decision-making. It’s not only the right strategy for patients. It’s smart business strategy.


In this article, David explains how asymmetric information exchange between providers and patients contributes to medical errors, customer frustration, over and under-treatment in U.S. healthcare industry.

About David W. Johnson

David W. Johnson

Dave is the CEO and founder of 4Sight Health, a healthcare boutique specializing in thought capital, strategic advisory services and venture investing.  4Sight Health operates at the intersection of healthcare economics, strategy and capital formation. The company’s four-stage analytic (Assess. Align. Adapt. Advance.) reflects the bottom-up, evolutionary character of disruptive, market-driven reform.  Mr. Johnson speaks frequently, authors a widely-read blog on market-driven healthcare reform and is currently writing Market versus Medicine: America’s Battle for Better Healthcare at Lower Prices that will publish in 2015.

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