Skip to main content
Log in

Measuring Public Preferences for Health Outcomes and Expenditures in a Context of Healthcare Resource Re-Allocation

  • Original Research Article
  • Published:
PharmacoEconomics Aims and scope Submit manuscript

Abstract

Background

The final outcome of any resource allocation decision in healthcare cannot be determined in advance. Thus, decision makers, in deciding which new program to implement (or not), need to accommodate the uncertainty of different potential outcomes (i.e., change in both health and costs) that can occur, the size and nature (i.e., ‘bad’ or ‘good’) of these outcomes, and how they are being valued. Using the decision-making plane, which explicitly incorporates opportunity costs and relaxes the assumptions of perfect divisibility and constant returns to scale of the cost-effectiveness plane, all the potential outcomes of each resource allocation decision can be described.

Objective

In this study, we describe the development and testing of an instrument, using a discrete choice experiment methodology, allowing the measurement of public preferences for potential outcomes falling in different quadrants of the decision-making plane.

Method

In a sample of 200 participants providing 4200 observations, we compared four versions of the preference-elicitation instrument using a range of indicators.

Results

We identified one version that was well accepted by the participants and with good measurement properties.

Conclusion

This validated instrument can now be used in a larger representative sample to study the preferences of the public for potential outcomes stemming from re-allocation of healthcare resources.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1

Source: Sendi et al. [7]

Fig. 2
Fig. 3

Similar content being viewed by others

Notes

  1. The DMP can also be extended to the case where more than one existing treatment has to be replaced to free up resources for the implement of the new treatment.

  2. Those who prefer to use quality-adjusted life-years as a measure of health outcome can use the methodology described in this paper but will need to change the description of the health outcome in the instrument.

  3. We used the same experimental design for V1–3 because we specified null preferences for the ΔE and ΔC attributes, thus making the D-efficiency measure insensitive to changes in the magnitude only of the attribute levels. The purpose of V4 was to investigate whether a ‘better’ (i.e., statistically more efficient) design would allow building a better PEI. The gain in statistical efficiency was obtained by relaxing the assumption of null preferences for ΔE and ΔC, using V3 as non-null priors for the designing of V4.

  4. The V4 was administered 2 months after the three other versions because we first needed to analyze data obtained from V3 before being able to improve the statistical efficiency of the V4 design (by using V3 results as non-null priors).

  5. The formulae is for choice proportions and it allows the testing of whether observed proportions significantly differ from proportions that would be obtained by chance (in our case, 33% as there are three choice options per task): H0: proportion = 33%; H1: proportion ≠ 33%.

  6. Summary information about all model specifications can be found in the Electronic Supplementary Material (ESM).

References

  1. Williams A. The economic role of health indicators. In: Teeling Smith G, editor. Measuring the social benefits of medicine. London: Office of Health Economics; 1983. p. 63–7.

    Google Scholar 

  2. Weinstein M, Zeckhauser R. Critical ratios and efficient allocation. J Public Econ. 1973;2(2):147–57.

    Article  Google Scholar 

  3. Gafni A, Birch S. Incremental cost-effectiveness ratios (ICERs): the silence of the lambda. Soc Sci Med. 2006;62(9):2091–100.

    Article  Google Scholar 

  4. Birch S, Gafni A. Cost effectiveness/utility analyses: do current decision rules lead us to where we want to be? J Health Econ. 1992;11(3):279–96.

    Article  CAS  Google Scholar 

  5. Gafni A, Birch S. Guidelines for the adoption of new technologies: a prescription for uncontrolled growth in expenditures and how to avoid the problem. Can Med Assoc J. 1993;148(6):913–7.

    CAS  Google Scholar 

  6. Eckermann S, Pekarsky B. Can the real opportunity cost stand up: displaced services, the straw man outside the room. Pharmacoeconomics. 2014;32(4):319–25.

    Article  Google Scholar 

  7. Sendi P, Gafni A, Birch S. Opportunity costs and uncertainty in the economic evaluation of health care interventions. Health Econ. 2002;11(1):23–31.

    Article  CAS  Google Scholar 

  8. Gafni A, Walter S, Birch S. Uncertainty and the decision maker: assessing and managing the risk of undesirable outcomes: uncertainty and the decision maker. Health Econ. 2013;22(11):1287–94.

    Article  Google Scholar 

  9. de Bekker-Grob EW, Ryan M, Gerard K. Discrete choice experiments in health economics: a review of the literature. Health Econ. 2012;21(2):145–72.

    Article  Google Scholar 

  10. Clark MD, Determann D, Petrou S, Moro D, de Bekker-Grob EW. Discrete choice experiments in health economics: a review of the literature. Pharmacoeconomics. 2014;32(9):883–902.

    Article  Google Scholar 

  11. Gafni A, Birch S. QALYs and HYEs (healthy years equivalent): spotting the differences. J Health Econ. 1997;16(5):601–8.

    Article  CAS  Google Scholar 

  12. Louviere JJ, Street D, Burgess L, Wasi N, Islam T, Marley AAJ. Modeling the choices of individual decision-makers by combining efficient choice experiment designs with extra preference information. J Choice Model. 2008;1(1):128–64.

    Article  Google Scholar 

  13. Mørkbak MR, Christensen T, Gyrd-Hansen D. Choke price bias in choice experiments. Environ Resour Econ. 2010;45(4):537–51.

    Article  Google Scholar 

  14. Rose JM, Bliemer MCJ. Constructing efficient stated choice experimental designs. Transp Rev. 2009;29(5):587–617.

    Article  Google Scholar 

  15. Reed Johnson F, et al. Constructing experimental designs for discrete-choice experiments: report of the ISPOR Conjoint Analysis Experimental Design Good Research Practices Task Force. Value Health. 2013;16(1):3–13.

    Article  CAS  Google Scholar 

  16. Louviere JJ, Hensher DA, Swait JD, Adamowicz W. Stated choice methods: analysis and applications. Cambridge: Cambridge University Press; 2010.

    Google Scholar 

  17. McFadden D. Conditional logit analysis of qualitative choice behavior. In: Zarembka P, editor. Frontiers in econometrics. New York (NY): Academic Press; 1974. p. 105–42.

    Google Scholar 

  18. Train K. Discrete choice methods with simulation. 2nd ed. Cambridge: Cambridge University Press; 2009.

    Book  Google Scholar 

  19. Kahneman D, Tversky A. Prospect theory: an analysis of decision under risk. Econometrica. 1979;47(2):263.

    Article  Google Scholar 

  20. Samuelson W, Zeckhauser R. Status quo bias in decision making. J Risk Uncertain. 1988;1(1):7–59.

    Article  Google Scholar 

  21. Kahneman D, Knetsch JL, Thaler RH. Anomalies: the endowment effect, loss aversion, and status quo bias. J Econ Perspect. 1991;5(1):193–206.

    Article  Google Scholar 

  22. Bonsall P, Lythgoe B. Factors affecting the amount of effort expended in responding to questions in behavioural choice experiments. J Choice Model. 2009;2(2):216–36.

    Article  Google Scholar 

  23. Louviere JJ, Islam T, Wasi N, Street D, Burgess L. Designing discrete choice experiments: do optimal designs come at a price? J Consum Res. 2008;35(2):360–75.

    Article  Google Scholar 

  24. Bateman IJ, Burgess D, Hutchinson WG, Matthews DI. Learning design contingent valuation (LDCV): NOAA guidelines, preference learning and coherent arbitrariness. J Environ Econ Manag. 2008;55(2):127–41.

    Article  Google Scholar 

  25. Day B, Ian JB, Richard TC et al. Ordering effects and choice set awareness in repeat-response stated preference studies. J Environ Econ Manag. 2012;63(1):73–91.

    Article  Google Scholar 

  26. Yao RT, Scarpa R, Rose JM, Turner JA. Experimental design criteria and their behavioural efficiency: an evaluation in the field. Environ Resour Econ. 2015;62(3):433–55.

    Article  Google Scholar 

  27. Viney R, Savage E, Louviere J. Empirical investigation of experimental design properties of discrete choice experiments in health care. Health Econ. 2005;14(4):349–62.

    Article  Google Scholar 

  28. Diederich A, Swait J, Wirsik N. Citizen participation in patient prioritization policy decisions: an empirical and experimental study on patients’ characteristics. PLoS One. 2012;7(5):e36824.

    Article  CAS  Google Scholar 

  29. Erdem S, Thompson C. Prioritising health service innovation investments using public preferences: a discrete choice experiment. BMC Health Serv Res. 2014;28(14):360.

    Article  Google Scholar 

  30. Lim MK, Bae EY, Choi S-E, Lee EK, Lee T-J. Eliciting public preference for health-care resource allocation in South Korea. Value Health. 2012;15(1 Suppl.):S91–4.

    Article  Google Scholar 

  31. Scuffham PA, Julie R, Elizabeth K et al. Engaging the public in healthcare decision-making: quantifying preferences for healthcare through citizens’ juries. BMJ Open. 2014;4(5):e005437.

    Article  Google Scholar 

  32. Schwappach DLB, Strasmann TJ. Quick and dirty numbers? J Health Econ. 2006;25(3):432–48.

    Article  Google Scholar 

  33. Schwappach DLB. Does it matter who you are or what you gain? An experimental study of preferences for resource allocation. Health Econ. 2003;12(4):255–67.

    Article  Google Scholar 

  34. Green C, Gerard K. Exploring the social value of health-care interventions: a stated preference discrete choice experiment. Health Econ. 2009;18(8):951–76.

    Article  Google Scholar 

  35. Skedgel CD, Wailoo AJ. Akehurst RL. Choosing vs. allocating: discrete choice experiments and constant-sum paired comparisons for the elicitation of societal preferences. Health Expect. 2015;18(5):1227–40.

    Article  Google Scholar 

  36. Skedgel C, Wailoo A, Akehurst R. Societal preferences for distributive justice in the allocation of health care resources: a latent class discrete choice experiment. Med Decis Making. 2015;35(1):94–105.

    Article  Google Scholar 

Download references

Acknowledgements

We thank all participants in the study. We also thank the two anonymous reviewers for their comments, which helped us to improve the quality of this article.

Author information

Authors and Affiliations

Authors

Contributions

Nicolas Krucien, Nathalie Pelletier-Fleury, and Amiram Gafni were involved in the design of the study and the writing of the article. Nicolas Krucien was in charge of the data analysis.

Corresponding author

Correspondence to Nicolas Krucien.

Ethics declarations

Funding

Financial support for this study was provided by the French National Institute of Health and Medical Research (INSERM). The funding agreement ensured the authors’ independence in designing the study, interpreting the data, and writing and publishing the article.

Conflict of interest

Nicolas Krucien; Nathalie Pelletier-Fleury, and Amiram Gafni have no conflicts of interest that are directly relevant to the contents of this study.

Data availability

The datasets generated during and/or analyzed during the current study are available from the corresponding author on request.

Electronic supplementary material

Below is the link to the electronic supplementary material.

Supplementary material 1 (DOCX 40 kb)

Supplementary material 2 (DOCX 75 kb)

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Krucien, N., Pelletier-Fleury, N. & Gafni, A. Measuring Public Preferences for Health Outcomes and Expenditures in a Context of Healthcare Resource Re-Allocation. PharmacoEconomics 37, 407–417 (2019). https://doi.org/10.1007/s40273-018-0751-1

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s40273-018-0751-1

Navigation