IDEAS home Printed from https://ideas.repec.org/a/inm/ordeca/v4y2007i1p3-16.html
   My bibliography  Save this article

Adding Extrinsic Goals to the Quality-Adjusted Life Year Model

Author

Listed:
  • Gordon B. Hazen

    (Department of Industrial Engineering and Management Sciences, Northwestern University, Evanston, Illinois 60208-3119)

Abstract

Methods for evaluating health quality are central to medical decision analyses. The most important such method is the quality-adjusted life year (QALY), in which a patient’s length of life is given weight proportional to his/her quality of health. QALYs have become ubiquitous in medical cost-effectiveness as a measure of preference for health outcomes. However, numerous studies have demonstrated that the correlation between measured QALYs and a patient’s current health is at best modest. Moreover, it is known that individuals may trade lifetime for improved health quality when remaining lifetime is long, but not when it is short; and those with poor health quality may prefer to survive only until important life milestones and no longer. These behaviors are inconsistent with the QALY model. To address these concerns, we examine methods for including life goals in health preference models. The QALY model already captures ongoing goals such as minimizing chronic pain or maintaining physical mobility, goals whose achievement has impact proportional to length of life. However, other goals, termed extrinsic goals, such as completing an important project or seeing a child graduate from college, are qualitatively different---their achievement has impact that is independent of length of life, and therefore cannot be captured using QALYs. In this paper, we present a generalization of the QALY model that incorporates both ongoing goals and extrinsic goals. The new model allows the plausible behaviors mentioned above but forbidden by the QALY model.

Suggested Citation

  • Gordon B. Hazen, 2007. "Adding Extrinsic Goals to the Quality-Adjusted Life Year Model," Decision Analysis, INFORMS, vol. 4(1), pages 3-16, March.
  • Handle: RePEc:inm:ordeca:v:4:y:2007:i:1:p:3-16
    DOI: 10.1287/deca.1060.0082
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/deca.1060.0082
    Download Restriction: no

    File URL: https://libkey.io/10.1287/deca.1060.0082?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lia C.G. Verhoef & Anton F.J. De Haan & Willem A.J. Van Daal, 1994. "Risk Attitude in Gambles with Years of Life," Medical Decision Making, , vol. 14(2), pages 194-200, April.
    2. Peter C. Fishburn, 1965. "Markovian Dependence in Utility Theory with Whole Product Sets," Operations Research, INFORMS, vol. 13(2), pages 238-257, April.
    3. Peter C. Fishburn, 1965. "Independence in Utility Theory with Whole Product Sets," Operations Research, INFORMS, vol. 13(1), pages 28-45, February.
    4. Peep F. M. Stalmeier & Jan J. V. Busschbach & Leida M. Lamers & Paul F. M. Krabbe, 2005. "The gap effect: discontinuities of preferences around dead," Health Economics, John Wiley & Sons, Ltd., vol. 14(7), pages 679-685, July.
    5. Gordon B. Hazen, 1993. "Factored Stochastic Trees," Medical Decision Making, , vol. 13(3), pages 227-236, August.
    6. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    7. Dolan, Paul, 1996. "Modelling valuations for health states: the effect of duration," Health Policy, Elsevier, vol. 38(3), pages 189-203, December.
    8. Dolan, Paul & Stalmeier, Peep, 2003. "The validity of time trade-off values in calculating QALYs: constant proportional time trade-off versus the proportional heuristic," Journal of Health Economics, Elsevier, vol. 22(3), pages 445-458, May.
    9. A Mehrez & A Gafni, 1991. "Healthy Years Equivalent: How to Measure Them Using the Standard Gamble Approach," Centre for Health Economics and Policy Analysis Working Paper Series 22, Centre for Health Economics and Policy Analysis (CHEPA), McMaster University, Hamilton, Canada.
    10. Peter C. Fishburn & Ralph L. Keeney, 1975. "Generalized Utility Independence and Some Implications," Operations Research, INFORMS, vol. 23(5), pages 928-940, October.
    11. Joseph S. Pliskin & Donald S. Shepard & Milton C. Weinstein, 1980. "Utility Functions for Life Years and Health Status," Operations Research, INFORMS, vol. 28(1), pages 206-224, February.
    12. John M. Miyamoto & Peter P. Wakker & Han Bleichrodt & Hans J. M. Peters, 1998. "The Zero-Condition: A Simplifying Assumption in QALY Measurement and Multiattribute Utility," Management Science, INFORMS, vol. 44(6), pages 839-849, June.
    13. David B. Matchar & Stephen G. Pauker, 1986. "Transient Ischemic Attach in a Man with Coronary Artery Disease," Medical Decision Making, , vol. 6(4), pages 239-249, December.
    14. Robert F. Nease, 1994. "Risk Attitudes in Gambles Involving Length of Life," Medical Decision Making, , vol. 14(2), pages 201-203, April.
    15. Abraham Mehrez & Amiram Gafni, 1989. "Quality-adjusted Life Years, Utility Theory, and Healthy-years Equivalents," Medical Decision Making, , vol. 9(2), pages 142-149, June.
    16. Abraham Mehrez & Amiram Gafni, 1991. "The Healthy-years Equivalents," Medical Decision Making, , vol. 11(2), pages 140-146, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. L. Robin Keller, 2007. "From the Editor..," Decision Analysis, INFORMS, vol. 4(3), pages 111-113, September.
    2. L. Robin Keller & Ali Abbas & J. Eric Bickel & Vicki M. Bier & David V. Budescu & John C. Butler & Enrico Diecidue & Robin L. Dillon-Merrill & Raimo P. Hämäläinen & Kenneth C. Lichtendahl & Jason R. W, 2012. "From the Editors ---Brainstorming, Multiplicative Utilities, Partial Information on Probabilities or Outcomes, and Regulatory Focus," Decision Analysis, INFORMS, vol. 9(4), pages 297-302, December.
    3. Andrea C. Hupman & Jay Simon, 2023. "The Legacy of Peter Fishburn: Foundational Work and Lasting Impact," Decision Analysis, INFORMS, vol. 20(1), pages 1-15, March.
    4. L. Robin Keller & Ali Abbas & Manel Baucells & Vicki M. Bier & David Budescu & John C. Butler & Philippe Delquié & Jason R. W. Merrick & Ahti Salo & George Wu, 2010. "From the Editors..," Decision Analysis, INFORMS, vol. 7(4), pages 327-330, December.
      • L. Robin Keller & Manel Baucells & Kevin F. McCardle & Gregory S. Parnell & Ahti Salo, 2007. "From the Editors..," Decision Analysis, INFORMS, vol. 4(4), pages 173-175, December.
      • L. Robin Keller & Manel Baucells & John C. Butler & Philippe Delquié & Jason R. W. Merrick & Gregory S. Parnell & Ahti Salo, 2008. "From the Editors..," Decision Analysis, INFORMS, vol. 5(4), pages 173-176, December.
      • L. Robin Keller & Manel Baucells & John C. Butler & Philippe Delquié & Jason R. W. Merrick & Gregory S. Parnell & Ahti Salo, 2009. "From the Editors ..," Decision Analysis, INFORMS, vol. 6(4), pages 199-201, December.
    5. Alan Schwartz & Gordon B. Hazen & Ariel Leifer & Paul S. Heckerling, 2009. "Development of Goal-Sensitive Health-Related Utility Assessment Procedures," Medical Decision Making, , vol. 29(5), pages 590-598, September.
    6. L. Robin Keller, 2010. "From the Editor..," Decision Analysis, INFORMS, vol. 7(3), pages 235-237, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Moreno-Ternero, Juan D. & Platz, Trine Tornøe & Østerdal, Lars Peter, 2023. "QALYs, DALYs, and HALYs: A unifying framework for the evaluation of population health," Journal of Health Economics, Elsevier, vol. 87(C).
    2. Bleichrodt, Han, 1995. "QALYs and HYEs: Under what conditions are they equivalent?," Journal of Health Economics, Elsevier, vol. 14(1), pages 17-37, May.
    3. Afschin Gandjour, 2008. "Incorporating feelings related to the uncertainty about future health in utility measurement," Health Economics, John Wiley & Sons, Ltd., vol. 17(10), pages 1207-1213, October.
    4. James S. Dyer & James E. Smith, 2021. "Innovations in the Science and Practice of Decision Analysis: The Role of Management Science," Management Science, INFORMS, vol. 67(9), pages 5364-5378, September.
    5. Han Bleichrodt & Jose Luis Pinto, 2012. "Conceptual Foundations for Health Utility Measurement," Chapters, in: Andrew M. Jones (ed.), The Elgar Companion to Health Economics, Second Edition, chapter 35, Edward Elgar Publishing.
    6. Kristian Schultz Hansen & Lars Peter Østerdal, 2006. "Models of Quality‐Adjusted Life Years when Health Varies Over Time: Survey and Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 20(2), pages 229-255, April.
    7. Doctor, Jason N. & Bleichrodt, Han & Miyamoto, John & Temkin, Nancy R. & Dikmen, Sureyya, 2004. "A new and more robust test of QALYs," Journal of Health Economics, Elsevier, vol. 23(2), pages 353-367, March.
    8. Johannesson, Magnus, 1995. "Quality-adjusted life-years versus healthy-years equivalents -- A comment," Journal of Health Economics, Elsevier, vol. 14(1), pages 9-16, May.
    9. Ried, Walter, 1998. "QALYs versus HYEs--what's right and what's wrong. A review of the controversy," Journal of Health Economics, Elsevier, vol. 17(5), pages 607-625, October.
    10. Sharma, Rajiv & Stano, Miron, 2010. "Implications of an economic model of health states worse than dead," Journal of Health Economics, Elsevier, vol. 29(4), pages 536-540, July.
    11. Arthur E. Attema & Han Bleichrodt & Peter P. Wakker, 2012. "A Direct Method for Measuring Discounting and QALYs More Easily and Reliably," Medical Decision Making, , vol. 32(4), pages 583-593, July.
    12. Hougaard, Jens Leth & Moreno-Ternero, Juan D. & Østerdal, Lars Peter, 2013. "A new axiomatic approach to the evaluation of population health," Journal of Health Economics, Elsevier, vol. 32(3), pages 515-523.
    13. Attema, Arthur E. & Brouwer, Werner B.F., 2012. "A test of independence of discounting from quality of life," Journal of Health Economics, Elsevier, vol. 31(1), pages 22-34.
    14. John M. Miyamoto & Peter P. Wakker & Han Bleichrodt & Hans J. M. Peters, 1998. "The Zero-Condition: A Simplifying Assumption in QALY Measurement and Multiattribute Utility," Management Science, INFORMS, vol. 44(6), pages 839-849, June.
    15. Han Bleichrodt, 2002. "A new explanation for the difference between time trade‐off utilities and standard gamble utilities," Health Economics, John Wiley & Sons, Ltd., vol. 11(5), pages 447-456, July.
    16. Bleichrodt, Han, 1997. "Health utility indices and equity considerations," Journal of Health Economics, Elsevier, vol. 16(1), pages 65-91, February.
    17. MORENO-TERNERO, Juan & OSTERDAL, Lars P., 2014. "Normative foundations for equity-sensitive population health evaluation functions," LIDAM Discussion Papers CORE 2014031, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    18. Anne Spencer, 2001. "The Implications of Linking Questions within the SG and TTO Methods," Working Papers 438, Queen Mary University of London, School of Economics and Finance.
    19. Catherine Buron & Catherine Le Galès & Anne-Marie Fericelli, 1997. "L'indicateur QALYs à la lumière de la théorie de l'utilité espérée multi-attribut explicitement décomposée," Économie et Prévision, Programme National Persée, vol. 129(3), pages 55-71.
    20. van der Pol, Marjon & Ruggeri, Matteo, 2008. "Is risk attitude outcome specific within the health domain?," Journal of Health Economics, Elsevier, vol. 27(3), pages 706-717, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ordeca:v:4:y:2007:i:1:p:3-16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.