Analysis of the Factors Affecting Patient's Choice of Health Provider, and an Estimation of Marginal Willingness to Pay for Better Service Quality, Using Multinomial Logit Model

The aim of the study is two folds. First, it aims at analyzing the factors affecting Patient's choice of health service provider (Private clinic, public hospital, or private hospital). This study applies a multinomial logit model (MNL) to analyze patient's choice, using a sample of 695 respondents drawn from Damascus City. Second, the study estimates the marginal willingness to pay for an extra gain from a specific change in each of the characteristics of health provider, such as reputation and waiting time. Analysis results were as follows: - Perceived reputation of the health provider is the most important factor affecting the patient's choice of health provider. - Ironically, higher treatment cost is associated with higher probability of choosing the more expensive health provider alternative. - The choice of a specific health provider against another is negatively associated with associated commuting time. - Waiting time at the private clinic has no significant effect on patient's choice of the private clinic. - Marginal willingness to pay for extra level on perceived reputation index of a private clinic is estimated at US$1.41, and US$0.07 for an extra hour saved of waiting time. - Marginal willingness to pay for extra level on perceived reputation index of a private hospital is estimated at US$1.06, and US$4.79 for an extra hour saved of waiting time. - Patient's demographic characteristics have an insignificant effect on the choice of a specific health provider against another. The study recommends health providers to enhance the level of their professional reputation as it turned out to be the most crucial factor affecting patient's choice, and at the same time keep on improving other factors such as internal procedures, waiting time, and location.