The value of health

BMC Health Serv Res. 2008 Jun 25:8:136. doi: 10.1186/1472-6963-8-136.

Abstract

Background: A major problem in cost-effectiveness studies is where to draw the line between interventions which are cost-effective and those who are not. Lacking a notion about the value of a QALY, all ultimate values to the cost-effectiveness ratio are essentially arbitrary.

Methods: This paper presents a simple empirical model to estimate the compensating income variation of diseases and health problems. The model is estimated using data for the Netherlands.

Results: The compensating income variation is between euro 20,000 and euro 90,000. This is higher than most of the ultimate values used by policy-makers to decide whether an intervention is cost-effective. Our figures are roughly similar to those found in studies about the value of a statistical life year.

Conclusion: Estimates on the compensating income variation of diseases and health problems may provide useful information on the maximum acceptable cost-effectiveness ratio of medical interventions than those currently used by policy makers.

Publication types

  • Letter

MeSH terms

  • Cost-Benefit Analysis / methods*
  • Disease / economics*
  • Empirical Research
  • Happiness
  • Health Expenditures*
  • Health Status
  • Humans
  • Income*
  • Models, Econometric*
  • Netherlands
  • Personal Satisfaction
  • Quality-Adjusted Life Years*