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Estimating Willingness to Pay for Online Health Services with Discrete-Choice Experiments

Author

Listed:
  • Jieun Chang

    (Southwestern Oklahoma State University)

  • Scott J. Savage

    (University of Colorado Boulder)

  • Donald M. Waldman

    (University of Colorado Boulder)

Abstract

Background Research has outlined the benefits and costs of online health services, but these studies have typically focused on a specific geographic region or disease. Very few studies have estimated consumer demand for online health services. Objective This study estimated household’s willingness to pay (WTP) for the ability to receive remote diagnosis, treatment, monitoring and consultations online (telehealth). Methods WTP was estimated with a random utility model and household data from a US survey employing repeated discrete-choice experiments. Results The representative household was willing to pay $US4.39 per month for telehealth. This valuation increased to $US5.85 for households with higher opportunity costs, as measured by income, and to $US6.22 for households living more than 20 miles away from their nearest medical facility. Conclusion WTP estimates offer insights into the potential benefits from policies intended to promote the expansion of online health services into underserved areas. These include the Federal Communications Commission’s Rural Healthcare Pilot Program and the Department of Agriculture’s Distance Learning and Telemedicine Grants programme.

Suggested Citation

  • Jieun Chang & Scott J. Savage & Donald M. Waldman, 2017. "Estimating Willingness to Pay for Online Health Services with Discrete-Choice Experiments," Applied Health Economics and Health Policy, Springer, vol. 15(4), pages 491-500, August.
    • Handle: RePEc:spr:aphecp:v:15:y:2017:i:4:d:10.1007_s40258-017-0316-z
    DOI: 10.1007/s40258-017-0316-z
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    References listed on IDEAS

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    3. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, November.
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    Cited by:

    1. Daniel Pérez-Troncoso & David M. Epstein & José A. Castañeda-García, 2021. "Consumers' Preferences and Willingness to Pay for Personalised Nutrition," Applied Health Economics and Health Policy, Springer, vol. 19(5), pages 757-767, September.
    2. Vo, Linh K. & Allen, Michelle J. & Cunich, Michelle & Thillainadesan, Janani & McPhail, Steven M. & Sharma, Pakhi & Wallis, Shannon & McGowan, Kelly & Carter, Hannah E., 2024. "Stakeholders’ preferences for the design and delivery of virtual care services: A systematic review of discrete choice experiments," Social Science & Medicine, Elsevier, vol. 340(C).
    3. Mohd Zuhair & Ram Babu Roy, 2022. "Eliciting relative preferences for the attributes of health insurance schemes among rural consumers in India," International Journal of Health Economics and Management, Springer, vol. 22(4), pages 443-458, December.

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