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Severity as an independent determinant of the social value of a health service

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  • Jeff Richardson

    ()

  • John McKie

    ()

  • Stuart Peacock
  • Angelo Iezzi

Abstract

The measure of benefit in cost utility analysis (CUA) is the increase in utility which is attributable to a health service. This paper reviews the evidence that the severity of an illness – the health state before receipt of the health service – may be independently important for social (as distinct from individual) preferences for different services. An earlier 1997 Australian study is summarised. Data from a 2004 survey are used to quantify the apparent importance of severity. Person trade off (PTO) scores are used to measure social preferences and time trade off (TTO) scores to measure individual preferences. Econometric results suggest the severity may more than double the index of social value of a health service.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Article provided by Springer in its journal The European Journal of Health Economics.

Volume (Year): 12 (2011)
Issue (Month): 2 (April)
Pages: 163-174

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Handle: RePEc:spr:eujhec:v:12:y:2011:i:2:p:163-174

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Related research

Keywords: Severity; Cost utility analysis (CUA); Social preferences; Assessment of quality of life (AQoL); Person trade-off (PTO); I18;

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References

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  1. Nord, Erik & Richardson, Jeff & Street, Andrew & Kuhse, Helga & Singer, Peter, 1995. "Maximizing health benefits vs egalitarianism: An Australian survey of health issues," Social Science & Medicine, Elsevier, vol. 41(10), pages 1429-1437, November.
  2. Dolan, Paul & Tsuchiya, Aki, 2005. "Health priorities and public preferences: the relative importance of past health experience and future health prospects," Journal of Health Economics, Elsevier, vol. 24(4), pages 703-714, July.
  3. Richardson, Jeff & McKie, John, 2007. "Economic evaluation of services for a National Health Scheme: The case for a fairness-based framework," Journal of Health Economics, Elsevier, vol. 26(4), pages 785-799, July.
  4. Jeff Richardson & Neil Day & Stuart Peacock & Angelo Iezzi, 2004. "The Assessment of Quality of Life (AQoL) II instrument. Overview of the Assessment of Quality of Life Mark II Project," Centre for Health Economics Working Papers 144/04, Monash University, Centre for Health Economics.
  5. Paul Dolan & Colin Green, 1998. "Using the person trade-off approach to examine differences between individual and social values," Health Economics, John Wiley & Sons, Ltd., vol. 7(4), pages 307-312.
  6. Jose-Maria Abellan-Perpi�an & Jose-Luis Pinto-Prades, 1999. "Health state after treatment: a reason for discrimination?," Health Economics, John Wiley & Sons, Ltd., vol. 8(8), pages 701-707.
  7. Ubel, Peter A. & Richardson, Jeff & Baron, Jonathan, 2002. "Exploring the role of order effects in person trade-off elicitations," Health Policy, Elsevier, vol. 61(2), pages 189-199, August.
  8. Dolan, Paul & Cookson, Richard, 2000. "A qualitative study of the extent to which health gain matters when choosing between groups of patients," Health Policy, Elsevier, vol. 51(1), pages 19-30, February.
  9. Jeff Richardson & Neil Day & Stuart Peacock, 2003. "Conceptualising the Assessment of Quality of Life instrument Mark II (AQoL 2): methodological innovations and the development of the AQoL descriptive system," Centre for Health Economics Working Papers 141/04, Monash University, Centre for Health Economics.
  10. Micha�l Schwarzinger & Jean-Louis Lano� & Erik Nord & Isabelle Durand-Zaleski, 2004. "Lack of multiplicative transitivity in person trade-off responses," Health Economics, John Wiley & Sons, Ltd., vol. 13(2), pages 171-181.
  11. Nord, Erik, 2006. "Severity of illness and priority setting: Worrisome lack of discussion of surprising finding," Journal of Health Economics, Elsevier, vol. 25(1), pages 170-172, January.
  12. Jeff Richardson & Neil Day & Stuart Peacock & Angelo Iezzi, 2004. "The Assessment of Quality of Life (AQoL) II instrument. Derivation of the scaling weights using a multiplicative model and econometric second stage correction," Centre for Health Economics Working Papers 142/04, Monash University, Centre for Health Economics.
  13. Jeff Richardson & Neil Atherton Day & Stuart Peacock & Angelo Iezzi, 2004. "Measurement of the Quality of Life for Economic Evaluation and the Assessment of Quality of Life (AQoL) Mark 2 Instrument," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 37(1), pages 62-88, 03.
  14. Erik Nord & Jose Luis Pinto & Jeff Richardson & Paul Menzel & Peter Ubel, 1999. "Incorporating societal concerns for fairness in numerical valuations of health programmes," Health Economics, John Wiley & Sons, Ltd., vol. 8(1), pages 25-39.
  15. Nord, Erik, 1993. "The trade-off between severity of illness and treatment effect in cost-value analysis of health care," Health Policy, Elsevier, vol. 24(3), pages 227-238, August.
  16. Stuart Peacock & Jeff Richardson & Neil Day & Angelo Iezzi, 2004. "The Assessment of Quality of Life (AQoL) II instrument. The effect of deliberation and alternative utility weights in a multi-attribute utility instrument," Centre for Health Economics Working Papers 143/04, Monash University, Centre for Health Economics.
  17. Jose-Luis Pinto Prades, 1997. "Is the Person Trade-off a Valid Method for Allocating Health Care Resources?," Health Economics, John Wiley & Sons, Ltd., vol. 6(1), pages 71-81.
  18. Dolan, Paul & Tsuchiya, Aki, 2006. "Severity of illness and priority setting: Worrisome criticism of inconvenient finding?--A reply to Erik Nord," Journal of Health Economics, Elsevier, vol. 25(1), pages 173-174, January.
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Cited by:
  1. Hurley, Jeremiah & Mentzakis, Emmanouil, 2013. "Health-related externalities: Evidence from a choice experiment," Journal of Health Economics, Elsevier, vol. 32(4), pages 671-681.
  2. Erik Nord & Jose Luis Pinto & Jeff Richardson & Paul Menzel & Peter Ubel, 1999. "Incorporating societal concerns for fairness in numerical valuations of health programmes," Health Economics, John Wiley & Sons, Ltd., vol. 8(1), pages 25-39.

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