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An Instrument For Measuring The Social Willingness To Pay For Health State Improvement

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  • Jeff Richardson
  • Angelo Iezzi
  • Kompal Sinha
  • Munir A. Khan
  • John Mckie

Abstract

This paper describes an instrument for measuring the social value of changes in health status, the Relative Social Willingness to Pay. It is a unique combination of measurement attributes designed to minimise cognitive complexity and provide an additional option for measuring ‘social value’. Similar to the person trade‐off (PTO), it adopts a social perspective and asks respondents to evaluate programmes on behalf of society. Unlike the PTO, trade‐offs between the options use dollars, not numbers of patients. Respondents are not, however, asked for their personal willingness to pay. Rather, the opportunity cost of funds spent on one service is as an offsetting reduction in funds for a second service. The amount spent on each service therefore indicates relative, not absolute, value. However, the two services combine to produce one Quality adjusted life year which allows the calculation of a Quality adjusted life year‐like unit of social value on a 0–1 scale. A three‐stage survey was used to test the instrument's reliability, validity and sensitivity to the framing of the main question. Results indicate that the Relative Social Willingness to Pay produces values similar to but less than the PTO and time trade‐off techniques. Copyright © 2013 John Wiley & Sons, Ltd.

Suggested Citation

  • Jeff Richardson & Angelo Iezzi & Kompal Sinha & Munir A. Khan & John Mckie, 2014. "An Instrument For Measuring The Social Willingness To Pay For Health State Improvement," Health Economics, John Wiley & Sons, Ltd., vol. 23(7), pages 792-805, July.
    • Handle: RePEc:wly:hlthec:v:23:y:2014:i:7:p:792-805
    DOI: 10.1002/hec.2950
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    Cited by:

    1. Erik Nord, 2015. "Cost-Value Analysis of Health Interventions: Introduction and Update on Methods and Preference Data," PharmacoEconomics, Springer, vol. 33(2), pages 89-95, February.
    2. Jeff Richardson & Angelo Iezzi & Aimee Maxwell, 2017. "How important is severity for the evaluation of health services: new evidence using the relative social willingness to pay instrument," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(6), pages 671-683, July.
    3. Khachapon Nimdet & Nathorn Chaiyakunapruk & Kittaya Vichansavakul & Surachat Ngorsuraches, 2015. "A Systematic Review of Studies Eliciting Willingness-to-Pay per Quality-Adjusted Life Year: Does It Justify CE Threshold?," PLOS ONE, Public Library of Science, vol. 10(4), pages 1-16, April.
    4. Michael Schlander & Karla Hernandez-Villafuerte & Chih-Yuan Cheng & Jorge Mestre-Ferrandiz & Michael Baumann, 2021. "How Much Does It Cost to Research and Develop a New Drug? A Systematic Review and Assessment," PharmacoEconomics, Springer, vol. 39(11), pages 1243-1269, November.
    5. Jeff Richardson & John McKie & Angelo Iezzi & Aimee Maxwell, 2017. "Age Weights for Health Services Derived from the Relative Social Willingness-to-Pay Instrument," Medical Decision Making, , vol. 37(3), pages 239-251, April.
    6. Christian R. C. Kouakou & Thomas G. Poder, 2022. "Willingness to pay for a quality-adjusted life year: a systematic review with meta-regression," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(2), pages 277-299, March.
    7. J. Jaime Caro & John E. Brazier & Jonathan Karnon & Peter Kolominsky-Rabas & Alistair J. McGuire & Erik Nord & Michael Schlander, 2019. "Determining Value in Health Technology Assessment: Stay the Course or Tack Away?," PharmacoEconomics, Springer, vol. 37(3), pages 293-299, March.
    8. Jeff Richardson & Angelo Iezzi & Aimee Maxwell, 2018. "Does a patient's health potential affect the social valuation of health services?," PLOS ONE, Public Library of Science, vol. 13(4), pages 1-15, April.
    9. Peter Zweifel, 2021. "Mental health: The burden of social stigma," International Journal of Health Planning and Management, Wiley Blackwell, vol. 36(3), pages 813-825, May.

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