This is well and good, aside from potentially misrepresenting the research - midlevels are supposed to handle what they can and escalate what they’re unable to handle to a supervising physician.
There is similar research that shows NPs and PAs order more unnecessary diagnostic tests like labs and imaging, and are more likely to prescribe antibiotics and narcotics when it isn’t indicated.
No economist considers price the correct measure of quality, and a lot of economics deals with the often poor relationship between the two (and the factors subsidising the mismatch).
However, from a certain economic standpoint, the midwife service would be considered "inferior" to the doctors service due to the difference in training and licenses.
But I would rather put it in the "increase total factor productivity" category.
The idea here is that nurses are less costly than doctors: less training, lower barrier to entry, etc... And presumably, with the new organization, you are able to get the same quality of care with more nurses and less doctors. It is actually an increase in productivity: equivalent outcome for cheaper.