IDEAS home Printed from https://ideas.repec.org/a/spr/pharmo/v4y2020i4d10.1007_s41669-020-00211-0.html
   My bibliography  Save this article

Empirical Monetary Valuation of a Quality-Adjusted Life-Year in the Kingdom of Saudi Arabia: A Willingness-to-Pay Analysis

Author

Listed:
  • Shouki Bazarbashi

    (King Faisal Specialist Hospital and Research Centre)

  • Edward B. De Vol

    (King Faisal Specialist Hospital and Research Centre)

  • Fatma Maraiki

    (King Faisal Specialist Hospital and Research Centre)

  • Ahmed Al-Jedai

    (King Faisal Specialist Hospital and Research Centre)

  • Afshan A. Ali

    (King Faisal Specialist Hospital and Research Centre)

  • Ali M. Alhammad

    (National Guard Health Affairs, King Abdulaziz Medical City)

  • Ibrahim A. Aljuffali

    (King Saud University)

  • Michael Iskedjian

    (PharmIdeas USA Inc.
    University of Montreal)

Abstract

Background No willingness-to-pay (WTP) per quality-adjusted life-year (QALY) value exists for the Kingdom of Saudi Arabia (KSA). Objective The primary objective of this study was to determine the WTP for a QALY in the KSA. Methods Adult citizens of the KSA, patients with cancer, or members of the general public (MGP) were recruited to participate in a time trade-off survey to elicit health utilities. Cancer was chosen as the disease of interest for patients and the MGP, with a scenario describing stage 3 colorectal cancer, because it is a disease condition that impacts on both quality of life and survival time. In a second step, respondents were asked about their WTP to move from the estimated health state to a state of perfect health for 1 year (QALY). Finally, that amount was processed to generate the WTP for a full QALY. The second step was repeated with a 5-year horizon. Sensitivity analyses were performed without outliers. Results From 400 participants, data from 378 subjects were obtained and usable: 177 patients, 201 MGP; 278 male, 100 female subjects; 231 aged 26–65 years. Demographic distribution varied widely between the two subgroups for age, education level, and employment status, but with less variation in sex and income. Elicited health utilities were 0.413 (0.472 after adjustment) for the overall group, 0.316 (0.416) for patients, and 0.499 (0.508) for MGP. Overall WTP for a QALY was $US25,600 (adjusted $US32,000) for the 1-year horizon and $US19,200 (adjusted $US22,720) for the 5-year horizon. Conclusion This was the first empirical attempt to estimate the WTP per QALY for the KSA. Results are comparable to those in some other countries and to gross domestic product figures for the KSA. Further research in a country-wide sample is warranted.

Suggested Citation

  • Shouki Bazarbashi & Edward B. De Vol & Fatma Maraiki & Ahmed Al-Jedai & Afshan A. Ali & Ali M. Alhammad & Ibrahim A. Aljuffali & Michael Iskedjian, 2020. "Empirical Monetary Valuation of a Quality-Adjusted Life-Year in the Kingdom of Saudi Arabia: A Willingness-to-Pay Analysis," PharmacoEconomics - Open, Springer, vol. 4(4), pages 625-633, December.
    • Handle: RePEc:spr:pharmo:v:4:y:2020:i:4:d:10.1007_s41669-020-00211-0
    DOI: 10.1007/s41669-020-00211-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s41669-020-00211-0
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1007/s41669-020-00211-0?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. Baker, Rachel & Chilton, Sue & Donaldson, Cam & Jones-Lee, Michael & Lancsar, Emily & Mason, Helen & Metcalf, Hugh & Pennington, Mark & Wildman, John, 2011. "Searchers vs surveyors in estimating the monetary value of a QALY: resolving a nasty dilemma for NICE," Health Economics, Policy and Law, Cambridge University Press, vol. 6(4), pages 435-447, October.
    2. Frew, Emma J. & Wolstenholme, Jane L. & Whynes, David K., 2004. "Comparing willingness-to-pay: bidding game format versus open-ended and payment scale formats," Health Policy, Elsevier, vol. 68(3), pages 289-298, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Chris Sampson’s journal round-up for 21st December 2020
      by Chris Sampson in The Academic Health Economists' Blog on 2020-12-21 12:00:05

    Citations

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


    Cited by:

    1. Alene Sze Jing Yong & Yi Heng Lim & Mark Wing Loong Cheong & Ednin Hamzah & Siew Li Teoh, 2022. "Willingness-to-pay for cancer treatment and outcome: a systematic review," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 23(6), pages 1037-1057, August.
    2. 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.

    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. Ryen, Linda & Svensson, Mikael, 2014. "The Willingness to Pay for a QALY: a Review of the Empirical Literature," Karlstad University Working Papers in Economics 12, Karlstad University, Department of Economics.
    2. Herrera-Araujo, Daniel & Hammitt, James K. & Rheinberger, Christoph M., 2020. "Theoretical bounds on the value of improved health," Journal of Health Economics, Elsevier, vol. 72(C).
    3. S. Olofsson & U.-G. Gerdtham & L. Hultkrantz & U. Persson, 2018. "Measuring the end-of-life premium in cancer using individual ex ante willingness to pay," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 19(6), pages 807-820, July.
    4. Mirasgedis, S. & Tourkolias, C. & Tzovla, E. & Diakoulaki, D., 2014. "Valuing the visual impact of wind farms: An application in South Evia, Greece," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 296-311.
    5. Moshe Yanovskiy & Yehoshua Socol, 2022. "Are Lockdowns Effective in Managing Pandemics?," IJERPH, MDPI, vol. 19(15), pages 1-12, July.
    6. 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.
    7. Jacopo Bonan & Philippe LeMay-Boucher & Michel Tenikue, 2014. "Households' Willingness to Pay for Health Microinsurance and its Impact on Actual Take-up: Results from a Field Experiment in Senegal," Journal of Development Studies, Taylor & Francis Journals, vol. 50(10), pages 1445-1462, November.
    8. Mohammad Rashid & Debapratim Pandit, 2019. "Analysis of service quality of household toilets expected by households practicing open defecation: a study in rural settlements of Bihar, India," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 21(5), pages 2487-2506, October.
    9. Laura Vallejo‐Torres & Borja García‐Lorenzo & Pedro Serrano‐Aguilar, 2018. "Estimating a cost‐effectiveness threshold for the Spanish NHS," Health Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 746-761, April.
    10. Javad Javan-Noughabi & Zahra Kavosi & Ahmad Faramarzi & Mohammad Khammarnia, 2017. "Identification determinant factors on willingness to pay for health services in Iran," Health Economics Review, Springer, vol. 7(1), pages 1-6, December.
    11. Ellen Verhofstadt & Miet Maertens, 2014. "Smallholder cooperatives and agricultural performance in Rwanda: do organizational differences matter?," Agricultural Economics, International Association of Agricultural Economists, vol. 45(S1), pages 39-52, November.
    12. Marcello Basili & Filippo Belloc, 2012. "How to Measure the Economic Impact of Vector-Borne Diseases at a Country Level: An Assessment," Department of Economics University of Siena 648, Department of Economics, University of Siena.
    13. David Bardey & Philippe de Donder & Vera Zaporozhets, 2024. "The Health Technology Assessment Approach of the Economic Value of Diagnostic Tests - A Literature Review," Working Papers hal-04472485, HAL.
    14. Verhofstadt, Ellen & Maertens, Miet, 2013. "Cooperative membership and agricultural performance: Evidence from Rwanda," Working Papers 157389, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    15. Mark Pennington & Rachel Baker & Werner Brouwer & Helen Mason & Dorte Gyrd Hansen & Angela Robinson & Cam Donaldson & the EuroVaQ Team, 2015. "Comparing WTP Values of Different Types of QALY Gain Elicited from the General Public," Health Economics, John Wiley & Sons, Ltd., vol. 24(3), pages 280-293, March.
    16. Ebad Allah Jahanabadi & Seyed Nematolla Mousavi & Mohammad Hashem Moosavihaghighi & Mohammad Reza Eslami, 2024. "Consumers’ willingness to pay for antibiotic-free chicken meat: application of contingent valuation method," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(10), pages 25151-25172, October.
    17. Polinori, Paolo, 2019. "Wind energy deployment in wind farm aging context. Appraising an onshore wind farm enlargement project: A contingent valuation study in the Center of Italy," Energy Economics, Elsevier, vol. 79(C), pages 206-220.
    18. Lotte Soeteman & Job Exel & Ana Bobinac, 2017. "The impact of the design of payment scales on the willingness to pay for health gains," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(6), pages 743-760, July.
    19. Paul McNamee & Laura Ternent & Adjima Gbangou & David Newlands, 2010. "A game of two halves? Incentive incompatibility, starting point bias and the bidding game contingent valuation method," Health Economics, John Wiley & Sons, Ltd., vol. 19(1), pages 75-87, January.
    20. David Whynes & Emma Frew & Jane Wolstenholme, 2005. "Willingness-to-Pay and Demand Curves: A Comparison of Results Obtained Using Different Elicitation Formats," International Journal of Health Economics and Management, Springer, vol. 5(4), pages 369-386, December.

    More about this item

    Statistics

    Access and download statistics

    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:spr:pharmo:v:4:y:2020:i:4:d:10.1007_s41669-020-00211-0. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.