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A Review of the TTO Method for Health State Valuation 
Koonal Shah 
Office of Health Economics 
ISPOR 6thAsia-Pacific Conference • 6-9 September 2014 
Beijing
• 
Methods for valuing health states 
• 
How does TTO work? 
• 
Why use TTO? 
• 
Things to consider when designing a TTO study 
Agenda
Methods for valuing health states 
• 
Simple ranking exercise 
• 
Qualitative discriminant process 
Ranking techniques 
• 
Visual analogue scale 
• 
Likert scale 
Rating techniques 
• 
Willingness to pay 
• 
Discrete choice experiment 
• 
Standard gamble 
• 
Time trade-off 
Choice- based techniques
Standard gamble 
• 
Principle underpinning standard gamble: the worse the health state, the higher the risk of immediate death one will accept in order to avoid it
Health state 
YEARS 
Full health 
Dead 
t 
x 
• 
Principle underpinning TTO: the worse the health state, the more time in full health one will be willing to sacrifice in order to avoid it 
Time trade-off (TTO) 
VALUE
• 
Respondent is presented with a paired comparison 
• 
The choice is between two hypothetical ‘lives’ 
• 
Unlike the standard gamble, both alternatives involve certain (rather than uncertain) outcomes 
How does TTO work?
• 
For a specified chronic health state preferred to death: 
• 
Life A involves living for period tin the specified health state 
• 
Life B involves living in ‘full health’ for period xwhere x< t 
• 
Time xis varied until the respondent is indifferent between the two lives 
• 
The score given to the health state is then x/t 
How does TTO work? (2)
• 
Q: Would you rather live for 10years in the health state (Life A) or for 5years in full health (Life B)? 
• 
A: I prefer Life A 
• 
Q: Would you rather live for 10years in the health state (Life A) or for 6years in full health (Life B)? 
How does TTO work? (3) 
If respondent prefers Life A, Life B is made moreattractive 
If respondent prefers Life B, Life B is made lessattractive
Health state = ? 
YEARS 
Full health = 1 
Dead = 0 
t 
x 
How does TTO work? (4) 
VALUE
Health state = 0.5 
YEARS 
Full health = 1 
Dead = 0 
10 
5 
How does TTO work? (4) 
VALUE 
Suppose the respondent is indifferent between living in full health for 5years and living in the health state for 10years 
Health state value = x/t= 5/10 = 0.5
Health state = 0.9 
YEARS 
Full health = 1 
Dead = 0 
10 
9 
How does TTO work? (4) 
VALUE 
Suppose the respondent is indifferent between living in full health for 9years and living in the health state for 10years 
Health state value = x/t= 9/10 = 0.9
• 
A key assumption required for the current TTO approach is constant proportionality 
• 
Requires that respondents are prepared to give up the same proportion of time (e.g. 40%) in full health (x),regardless of the length of time in the health state (t) being considered 
• 
If a respondent is indifferent between t= 10 years and x= 6 years (resulting in a value of 0.6), they should also be indifferent between t= 5 years and x= 3 years 
Constant proportionality
• 
Involves the concept of choice 
• 
Developed specifically for use in health care 
• 
Most people find it easier to think about time than to think about probabilities 
• 
Respondents only have to consider one health state at a time 
Why use TTO?
• 
Which mode of administration is most suitable? 
• 
How should health states considered to be worse than dead be valued? 
• 
What procedure should be used for arriving at the respondent’s point of indifference? 
Things to consider when designing a TTO study
Please address enquiries to Koonal Shah at kshah@ohe.org 
The Office of Health Economics is a research and consulting organisation that has been providing specialised research, analysis and expertise on a range of health care and life sciences issues and topics for more than 50 years. 
Office of Health EconomicsSouthside, 7th Floor105 Victoria StreetLondon SW1E 6QT United Kingdom 
+44 20 7747 8850 www.ohe.org 
Contact

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ISPOR Workshop: A Review of the TTO Method for Health State Valuation

  • 1. A Review of the TTO Method for Health State Valuation Koonal Shah Office of Health Economics ISPOR 6thAsia-Pacific Conference • 6-9 September 2014 Beijing
  • 2. • Methods for valuing health states • How does TTO work? • Why use TTO? • Things to consider when designing a TTO study Agenda
  • 3. Methods for valuing health states • Simple ranking exercise • Qualitative discriminant process Ranking techniques • Visual analogue scale • Likert scale Rating techniques • Willingness to pay • Discrete choice experiment • Standard gamble • Time trade-off Choice- based techniques
  • 4. Standard gamble • Principle underpinning standard gamble: the worse the health state, the higher the risk of immediate death one will accept in order to avoid it
  • 5. Health state YEARS Full health Dead t x • Principle underpinning TTO: the worse the health state, the more time in full health one will be willing to sacrifice in order to avoid it Time trade-off (TTO) VALUE
  • 6. • Respondent is presented with a paired comparison • The choice is between two hypothetical ‘lives’ • Unlike the standard gamble, both alternatives involve certain (rather than uncertain) outcomes How does TTO work?
  • 7. • For a specified chronic health state preferred to death: • Life A involves living for period tin the specified health state • Life B involves living in ‘full health’ for period xwhere x< t • Time xis varied until the respondent is indifferent between the two lives • The score given to the health state is then x/t How does TTO work? (2)
  • 8. • Q: Would you rather live for 10years in the health state (Life A) or for 5years in full health (Life B)? • A: I prefer Life A • Q: Would you rather live for 10years in the health state (Life A) or for 6years in full health (Life B)? How does TTO work? (3) If respondent prefers Life A, Life B is made moreattractive If respondent prefers Life B, Life B is made lessattractive
  • 9. Health state = ? YEARS Full health = 1 Dead = 0 t x How does TTO work? (4) VALUE
  • 10. Health state = 0.5 YEARS Full health = 1 Dead = 0 10 5 How does TTO work? (4) VALUE Suppose the respondent is indifferent between living in full health for 5years and living in the health state for 10years Health state value = x/t= 5/10 = 0.5
  • 11. Health state = 0.9 YEARS Full health = 1 Dead = 0 10 9 How does TTO work? (4) VALUE Suppose the respondent is indifferent between living in full health for 9years and living in the health state for 10years Health state value = x/t= 9/10 = 0.9
  • 12. • A key assumption required for the current TTO approach is constant proportionality • Requires that respondents are prepared to give up the same proportion of time (e.g. 40%) in full health (x),regardless of the length of time in the health state (t) being considered • If a respondent is indifferent between t= 10 years and x= 6 years (resulting in a value of 0.6), they should also be indifferent between t= 5 years and x= 3 years Constant proportionality
  • 13. • Involves the concept of choice • Developed specifically for use in health care • Most people find it easier to think about time than to think about probabilities • Respondents only have to consider one health state at a time Why use TTO?
  • 14. • Which mode of administration is most suitable? • How should health states considered to be worse than dead be valued? • What procedure should be used for arriving at the respondent’s point of indifference? Things to consider when designing a TTO study
  • 15. Please address enquiries to Koonal Shah at kshah@ohe.org The Office of Health Economics is a research and consulting organisation that has been providing specialised research, analysis and expertise on a range of health care and life sciences issues and topics for more than 50 years. Office of Health EconomicsSouthside, 7th Floor105 Victoria StreetLondon SW1E 6QT United Kingdom +44 20 7747 8850 www.ohe.org Contact