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

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  • Jeff Richardson

    ()
    (Centre for Health Economics, Monash University)

  • John McKie

    ()
    (Centre for Health Economics, Monash University)

  • Stuart Peacock

    (British Columbia Cancer Agency, Vancouver, British Columbia, Canada)

  • Angelo Iezzi

    ()
    (Centre for Health Economics, Monash University)

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.

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File URL: http://www.buseco.monash.edu.au/centres/che/pubs/rp18.pdf
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Bibliographic Info

Paper provided by Monash University, Centre for Health Economics in its series Centre for Health Economics Research Papers with number 18/07.

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Length: 18 pages
Date of creation: Jul 2007
Date of revision:
Handle: RePEc:mhe:cherps:2007-18

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Postal: Centre for Health Economics, Monash University, Building 75, Clayton, Victoria 3800, Australia
Phone: +61-3-9905-0733
Fax: +61-3-9905-8344
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Web page: http://www.buseco.monash.edu.au/centres/che/
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References

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  1. 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.
  2. 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, Monash University, Centre for Health Economics 141/04, Monash University, Centre for Health Economics.
  3. 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, Elsevier, vol. 25(1), pages 173-174, January.
  4. 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, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 37(1), pages 62-88, 03.
  5. 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.
  6. Nord, Erik, 2006. "Severity of illness and priority setting: Worrisome lack of discussion of surprising finding," Journal of Health Economics, Elsevier, Elsevier, vol. 25(1), pages 170-172, January.
  7. 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, Elsevier, vol. 26(4), pages 785-799, July.
  8. 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.
  9. 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.
  10. 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, Monash University, Centre for Health Economics 144/04, Monash University, Centre for Health Economics.
  11. 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, Elsevier, vol. 41(10), pages 1429-1437, November.
  12. 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.
  13. Ubel, Peter A. & Richardson, Jeff & Baron, Jonathan, 2002. "Exploring the role of order effects in person trade-off elicitations," Health Policy, Elsevier, Elsevier, vol. 61(2), pages 189-199, August.
  14. 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, Monash University, Centre for Health Economics 142/04, Monash University, Centre for Health Economics.
  15. 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, Elsevier, vol. 51(1), pages 19-30, February.
  16. Nord, Erik, 1993. "The trade-off between severity of illness and treatment effect in cost-value analysis of health care," Health Policy, Elsevier, Elsevier, vol. 24(3), pages 227-238, August.
  17. 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, Elsevier, vol. 24(4), pages 703-714, July.
  18. 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, Monash University, Centre for Health Economics 143/04, Monash University, Centre for Health Economics.
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Cited by:
  1. 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.
  2. Hurley, Jeremiah & Mentzakis, Emmanouil, 2013. "Health-related externalities: Evidence from a choice experiment," Journal of Health Economics, Elsevier, Elsevier, vol. 32(4), pages 671-681.

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