UC Irvine

Objective

The current 5-Star composite measure for nursing homes uses expert-driven weights to combine elements of quality into a single score. We assessed the feasibility of using the contingent valuation method (CVM) to derive consumers' preference-based weights for the Nursing Home Compare report card as a potential alternative approach.

Data sources

Survey of 4310 adults with nursing home experience (residents or family members of a resident) administered between September 25 and October 9, 2017.

Study design

Contingent valuation method based on respondents' answers to questions about willingness-to-trade (WTT) visit travel time for better quality in seven quantitative indices included in Nursing Home Compare. We calculated WTT amounts per standard deviation change in quantitative indices to derive weights.

Data collection methods

Web-based survey.

Principal findings

Contingent valuation method results are consistent with respondents making economically rational trade-offs between quality and travel time. Estimates of mean WTT vary across quantitative quality indices. They also vary in terms of respondent status and behavioral factors. Weights based on mean WTT per standard deviation vary substantially across indices, with the largest weights for inspections and staffing.

Conclusions

Contingent valuation method has promise as a method for deriving weights for use in summary measures that incorporate consumer preferences.