in this study we consider a general model for analysing the preferences, sa
tisfaction and actual cost-benefit valuation of provided health care servic
es 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 fin
ancial information from the hospital authority to estimate the cost per uni
t 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. T
he respondents are in a position to give specific and consistent informatio
n 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 i
mprovements proposed in the health personnel-patient relationship are more
expensive to implement than the customers (patients) are willing to pay for
. At the same rime these also imply the most significant increases in satis
faction. This emphasizes the importance of looking at both the revenue and
the cost side when designing modifications in the provision of service.