Abstract
In this study we consider a general model for analysing the preferences, satisfaction and actual cost-benefit valuation of provided health care services as they are explicitly perceived by the patients. The model is employed for analysing the quality and value of treatment in one of the main clinics in a large hospital in Stockholm. Data from patients are combined with financial information from the hospital authority to estimate the cost per unit of improved patient satisfaction and to specify a cost-benefit model for priority setting and resource allocation. Using a combination of a patient satisfaction and a willingness to pay approach is found to be functional. The respondents are in a position to give specific and consistent information concerning their perception and relative valuation. The results obtained from the empirical survey point at improvements where both the satisfaction and the willingness to pay are strong. It is seen that most of the major improvements proposed in the health personnel-patient relationship are more expensive to implement than the customers (patients) are willing to pay for. At the same time these also imply the most significant increases in satisfaction. This emphasizes the importance of looking at both the revenue and the cost side when designing modifications in the provision of service.