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Societal value, the person trade‐off, and the dilemma of whose values to measure for cost‐effectiveness analysis

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  • Peter A. Ubel
  • Jeff Richardson
  • Paul Menzel

Abstract

In a previous paper, it was argued that Societal Value measurement through person trade‐off (PTO) elicitation offers a way to include the values of both general public and patients into cost‐effectiveness analysis (CEA). It was said that patients’ values could be used to estimate the effect that various health care dimensions have on health‐related utility and that public values could be used to estimate the Societal Value of these changes in utility. However, this previous proposal still creates opportunities for the public to misvalue the benefit of health care interventions because of bias or misunderstanding about what the health‐related utility really is of various illnesses or disabilities. A procedure that combines patient and public values into CEA to partially correct for this bias is suggested in this paper. In addition, it is pointed out that, although Societal Value measurement offers a role for distinctly public preferences in CEA, it still does not answer the question of whose utilities ought to be included in CEA. Copyright © 2000 John Wiley & Sons, Ltd.

Suggested Citation

  • Peter A. Ubel & Jeff Richardson & Paul Menzel, 2000. "Societal value, the person trade‐off, and the dilemma of whose values to measure for cost‐effectiveness analysis," Health Economics, John Wiley & Sons, Ltd., vol. 9(2), pages 127-136, March.
    • Handle: RePEc:wly:hlthec:v:9:y:2000:i:2:p:127-136
    DOI: 10.1002/(SICI)1099-1050(200003)9:2<127::AID-HEC500>3.0.CO;2-Y
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    References listed on IDEAS

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    9. Nord, Erik & Richardson, Jeff & Street, Andrew & Kuhse, Helga & Singer, Peter, 1995. "Who cares about cost? Does economic analysis impose or reflect social values?," Health Policy, Elsevier, vol. 34(2), pages 79-94, November.
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    Cited by:

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    2. P. Wang & E. Tai & J. Thumboo & Hubertus Vrijhoef & Nan Luo, 2014. "Does Diabetes Have an Impact on Health-State Utility? A Study of Asians in Singapore," The Patient: Patient-Centered Outcomes Research, Springer;International Academy of Health Preference Research, vol. 7(3), pages 329-337, September.
    3. Jose-Luis Pinto-Prades & Veronica Farreras & Jaime de Bobadilla, 2008. "Willingness to pay for a reduction in mortality risk after a myocardial infarction: an application of the contingent valuation method to the case of eplerenone," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 9(1), pages 69-78, February.
    4. 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, February.
    5. Huang, Li & Frijters, Paul & Dalziel, Kim & Clarke, Philip, 2018. "Life satisfaction, QALYs, and the monetary value of health," Social Science & Medicine, Elsevier, vol. 211(C), pages 131-136.
    6. Joanna Coast, 2001. "Citizens, their agents and health care rationing: an exploratory study using qualitative methods," Health Economics, John Wiley & Sons, Ltd., vol. 10(2), pages 159-174, March.
    7. A. Pickard & Rima Tawk & James Shaw, 2013. "The effect of chronic conditions on stated preferences for health," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(4), pages 697-702, August.
    8. Stein, K & Dyer, M & Crabb, T & Milne, R & Round, A & Ratcliffe, J & Brazier, J, 2006. "An Internet “Value of Health” panel: recruitment, participation and compliance," MPRA Paper 29770, University Library of Munich, Germany.
    9. Damschroder, Laura J. & Zikmund-Fisher, Brian J. & Ubel, Peter A., 2005. "The impact of considering adaptation in health state valuation," Social Science & Medicine, Elsevier, vol. 61(2), pages 267-277, July.
    10. Ryan, Mandy & Scott, David A. & Donaldson, Cam, 2004. "Valuing health care using willingness to pay: a comparison of the payment card and dichotomous choice methods," Journal of Health Economics, Elsevier, vol. 23(2), pages 237-258, March.
    11. Björn Sossong & Stefan Felder & Malte Wolff & Klaus Krüger, 2017. "Evaluating the consequences of rheumatoid arthritis," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 18(6), pages 685-696, July.
    12. Lars Peter Østerdal, 2004. "QALYs, Person Trade-Offs, and the Pareto Principle," Discussion Papers 04-10, University of Copenhagen. Department of Economics.
    13. Ubel, Peter A. & Richardson, Jeff & Baron, Jonathan, 2002. "Exploring the role of order effects in person trade-off elicitations," Health Policy, Elsevier, vol. 61(2), pages 189-199, August.
    14. Ju-Hee Kim & Hyo-Jin Kim & Seung-Hoon Yoo, 2018. "Economic Value of Building a Firefighter Training Academy for Urban Disaster Management in Seoul, South Korea," Sustainability, MDPI, vol. 10(12), pages 1-11, December.
    15. Olena Hankivsk & Jane Friesen & Colleen Varcoe & Fiona MacPhail & Lorraine Greaves & Charmaine Spencer, 2004. "Expanding Economic Costing in Health Care: Values, Gender and Diversity," Canadian Public Policy, University of Toronto Press, vol. 30(3), pages 257-282, September.

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