The Time Price of Medical Care

Abstract
An econometric model is used to impute the value of time in the demand for medical care for members of a prepaid group practice medical care program. Separate estimates are obtained for (1) individuals who were employed full time, (2) housewives, and (3) time associated with taking children to a doctor. For individuals who were employed full time the estimate is close to the median wage rate. Sick leave is estimated to substantially reduce the value of time. It is concluded that ignoring the time price of medical care may result in misleading statistical analysis and mistaken policy recommendations.