A Contingent Valuation of Customer Delay in Medical Services

Abstract

In this study, the contingent valuation method, based on a survey of patients at medical practices, is used to estimate patients' willingness-to-pay to avoid delays in the reception area and the examination room. The maximum likelihood estimates indicate that patients' willingness-to-pay is affected by the actual waiting time rather than perception of the delay. Other factors that influence patients’ willingness-to-pay are rating of their experience at the medical practice, appointment, gender, age, health insurance, and the waiting location. The results also suggest that losses of consumer surplus due to delays at medical practices could be large, which has policy implications with respect to improvements in health care utilization in the U.S.