Table 4.
Demand responsiveness and elasticity of demand
| Procedures | Indicator | Observed | Marginal utility | Effect of change in quality or specialization | Elasticity | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Mean | SD | WTT | % WTT of mean TT | Demand change | % demand change | Demand change† | ||||
| Colorectal resection | Patient recommendation | 1.97 | 0.29 | 0.242 | 0.38 | 2.0% | 1.69 | 4.1% | 5.0 | 0.27 |
| 90-day mortality ratio | 1.05 | 1.00 | −0.023 | 0.23 | 1.2% | 1.02 | 2.5% | 3.0 | 0.02 | |
| Procedure volume | 131 | 92 | 0.003 | 1.80 | 9.3% | 7.92 | 19.2% | 23.5 | 0.37 | |
| Certification | 0.31 | – | 0.295 | 1.82 | 9.4% | 8.01 | 19.4% | 23.7 | – | |
| Knee replacement | Patient recommendation | 1.89 | 0.31 | 0.539 | 1.37 | 5.6% | 6.36 | 12.3% | 18.4 | 0.70 |
| 1-year revision rate | 1.04 | 1.13 | −0.019 | 0.17 | 0.7% | 0.80 | 1.5% | 2.3 | 0.01 | |
| Procedure volume | 160 | 141 | 0.003 | 3.07 | 12.5% | 14.23 | 27.6% | 41.2 | 0.45 | |
| Certification | 0.50 | – | 0.159 | 1.30 | 5.3% | 6.02 | 11.7% | 17.4 | – | |
| Professional recommendation | 0.11 | – | 0.070 | 0.57 | 2.3% | 2.65 | 5.1% | 7.7 | – | |
SD = Standard Deviation; TT = Travel Time. Notes: Marginal utilities, WTT and elasticity of the inversely rated indicator patient recommendation and clinical quality indicators is shown as positive number to support more intuitive interpretation. Demand change† denotes the extrapolated demand change (demand change divided by ratio of patient sample and total procedure volume 2017 & 2018).