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The role of the payment vehicle in non-market valuations of a health care service: willingness-to-pay for an ambulance helicopter service

Published online by Cambridge University Press:  09 February 2015

Dorte Gyrd-Hansen
Dorte Gyrd-Hansen*
Affiliation:
COHERE, Department of Business and Economics, Institute of Public Health, University of Southern Denmark, Campusvej 55, 5230 Odense M, Denmark
*
*Correspondence to: Dorte Gyrd-Hansen, COHERE, Department of Business and Economics, Institute of Public Health, University of Southern Denmark, Campusvej 55, 5230 Odense M, Denmark. Email: dgh@sam.sdu.dk
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Abstract

This study analyses the role of the payment vehicle when conducting non-market valuations of health care services using stated preference methods. Based on a contingent valuation study conducted in Denmark encompassing more than 3400 respondents three important conclusions are drawn. Firstly, it is found that the valuation of a publicly financed ambulance helicopter service is higher than for an identical privately financed service. Secondly, the results suggest that the public premium is likely to be partly driven by altruistic preferences, and that some citizens value access to this type of service for all. An important driver is also perceptions of quality of services across the private and public sector. Finally, it is shown that exclusion of protest bidders is problematic and may bias welfare estimates. The take home message is that it is difficult to isolate the value of a good per se, and that analysts should take care in applying the payment vehicle that is likely to be applied in real life when valuing non-market goods. There has been little awareness of the importance of choice of payment vehicle in the literature to date.

Type
Articles
Information
Health Economics, Policy and Law , Volume 11 , Issue 1 , January 2016 , pp. 1 - 16
Copyright
© Cambridge University Press 2015 

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