The economic theory of consumer protection in health care

Can a neoclassical economic model of consumer protection regulation in health care generate useful tests for improving consumer welfare? Regulation requires consumers to patronize one class of sellers when, in an unregulated market, some consumers would patronize a class of sellers who appear to offer a better price-quality tradeoff. Conditions in health care and characteristics of the neoclassical economic model make it highly unlikely there will be a useful test for a consumer protection effect.