A crazy, simplistic approach to healthcare regulation that just might work.

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http://1.bp.blogspot.com/_Z4m7jFBYVeg/SPqIVUyPfAI/AAAAAAAABME/BaHV_c-xaQI/s400-R/Restaurant+Ratings.jpg

Every restaurant in Los Angeles County is required to post a Department of Public Health-issued letter grading in their window. The program has been in effect for Los Angeles restaurants for about 10 years, and has been so successful New York just adopted it:

"...according to a 2007 study by Los Angeles County’s Health Department, 91 percent of people approved of the program. Mr. Marcus said that after the system was adopted, 'there was approximately a 13 percent decline in food-borne illness hospitalization.'

"Many restaurateurs expressed their opposition to the plan at a public hearing last month, and the Staten Island Chamber of Commerce went so far as to call the grades “a scarlet letter that will keep people from eating out,” in the words of a spokesman, Geoff Kravitz. He claimed restaurants posting anything less than an A would be treated by the public like Hester Prynne at a public shaming.

"After the board vote, Marc Murphy, chef and owner of Landmarc Restaurant in TriBeCa, said that 'showing customers this arbitrary inspection grade doesn’t tell the public anything, because it is a snapshot in time.'

But some restaurateurs, including Michael White, chef and owner of Alto, Convivio and Marea, embraced the new system. “I think it’s great, because it will keep everyone on their toes,” Mr. White said. “Customers have high expectations. No one wants to have a B in their window.”

http://www.nytimes.com/2010/03/17/nyregion/17inspect.html

Letter grades for both insurance companies and providers.

[Ozymanithrax]

1. That letter grade works because there are real inspectors out there.

They insist on substantive changes.

We can tell health insurance companies "Hears Your Sign" but unless you have real inspectors that and real penalties for those that fail, it won't work.

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2. Agree 100%.

The only reason it works in L.A. is the inspectors are in the field every day.

There would have to be a very efficient complaint-resolution mechanism similar to that used by the FCC or the states' public utility commissions.

I can tell you from personal experience you have never seen a restaurant owner move faster with a wet mop than when that B rating gets hung in their window.