ELICITING WILLINGNESS TO PAY WITHIN THE HEALTH SECTOR WITHOUT BIAS

Author(s)

Blumenschein K1, Blomquist G2, Johannesson M3, Horn N4, Freeman P5, 1University of Kentucky College of Pharmacy and Martin School of Public Policy and Administration, Lexington, KY, USA; 2University of Kentucky, Lexington, KY; 3Stockholm School of Economics, Stockholm, Sweden; 4American Pharmacy Services Corporation, Frankfort, KY; 5American Pharmacy Services Corporation, Frankfort, KY, USA

OBJECTIVE: The contingent valuation (CV) method is increasingly employed within the health care sector (HCS); however, the extent to which hypothetical choices mimic real economic choices remains unclear. A few previous experiments have studied the correspondence between hypothetical and real willingness to pay (WTP) within the HCS. The findings suggest that hypothetical bias (HB) (i.e. overestimation of real WTP) exists in the HCS, just as it does outside of the HCS. An important area of research is whether or not HB can be "calibrated" so that hypothetical choices more closely mimic real economic choices. We conducted an experiment directly comparing responses to a dichotomous choice CV question with real purchase decisions using a pharmacist provided diabetes management service as the item valued. We examine whether HB exists and we evaluate the usefulness of two HB mitigation techniques: the 'certainty approach' and the 'cheap-talk approach'. METHODS: A CV survey using 267 subjects with diabetes recruited from 9 Kentucky community pharmacies was conducted. Subjects fell into one of three groups: 1) hypothetical offer followed with certainty calibration; 2) hypothetical offer preceded by cheap talk; 3) real offer to purchase the service. All surveys were face-to-face with a trained interviewer. RESULTS: Before calibration, 45% of subjects in the hypothetical group stated that they would purchase the service compared to 26% of subjects in the real group (p = 0.006). After calibration with the 'certainty approach' the difference between the calibrated (24%) and real response rate was no longer significant (p = 0.83). The cheap talk group had a purchase rate of 45%, which was significantly different from the real group (p = 0.006). CONCLUSIONS: This experiment confirms the existence of HB in CV applications within the HCS. Results suggest that a 'certainty-approach' calibration technique is successful in mitigating HB, while 'cheap talk' script is not.

Conference/Value in Health Info

2004-05, ISPOR 2004, Arlington, VA, USA

Value in Health, Vol. 7, No. 3 (May/June 2004)

Code

PMD25

Topic

Patient-Centered Research

Topic Subcategory

Patient-reported Outcomes & Quality of Life Outcomes

Disease

Diabetes/Endocrine/Metabolic Disorders

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