What they are looking for is a way to increase the quality and the service without adversely affecting the cost. Most teaching hospitals, therefore, argue that training physicians helps to increase the outcomes-the quality. That would make up for an increase in cost. Generally, outcomes at good hospitals are about equal to those at quality university hospitals. However, costs are also generally higher at hospitals that instruct students.
Patients see two or three people instead of just one.
They may not like that, even though they may be getting a more thorough examination. Plus, there are typically more layers of people and services which will also add to the cost. But, if a patient perceives they are getting better care in a university setting, that helps to compensate for the diminished efficiency. The medical school has to sell education as an important part of medical delivery. There is less research and other non-revenue activities than you would find in a huge teaching hospital.