The selection of healthcare providers is influenced by a wide range of factors, including quality of care, patient characteristics, provider reputation, and recommendations from family and acquaintances. In particular, such decisions are not solely ba...
The selection of healthcare providers is influenced by a wide range of factors, including quality of care, patient characteristics, provider reputation, and recommendations from family and acquaintances. In particular, such decisions are not solely based on objective information but are shaped by subjective factors such as personal experience, perceived quality of care, and trust in the regional healthcare system. These factors can serve as primary drivers of patient outflow and exacerbate regional disparities in healthcare utilization.
Jeju Province is one of the few metropolitan-level regions in South Korea that lacks a tertiary general hospital, creating structural barriers for residents who need care for serious illnesses. Consequently, many residents must seek treatment outside the province. Moreover, Jeju's island geography establishes a clear boundary between local and external healthcare utilization, making it an ideal setting for examining patient mobility patterns.
This study aims to identify the factors influencing hospital choice among Jeju residents in cases of serious illness and to quantify the relative importance and willingness to pay (WTP) for each attribute using a discrete choice experiment (DCE). In order to empirically assess patients’ valuation of "perceived quality of care"—a factor difficult to capture through conventional healthcare utilization data—a focus group discussion (FGD) was conducted in advance to inform the design of the DCE.
The FGDs explored residents’ perceptions, decision-making contexts, and actual experiences in selecting healthcare providers. Participants emphasized physician competence and personal recommendations as the most important factors when seeking care for serious illnesses. A strong preference for large hospitals in Seoul over local facilities emerged, driven by expectations of higher-quality care, greater trust in renowned doctors, low confidence in local institutions, and the influence of word-of-mouth. Jeju’s tight-knit community further amplified the role of social networks and informal information exchange in hospital selection. From these findings, six key attributes were developed for the DCE: ‘physician competence’, ‘quality of facilities and equipment’, hospital reputation’, ‘recommendations from acquaintances or online sources’, ‘hospital location (Jeju vs. Seoul)’, and ‘treatment cost’.
The DCE results showed that all six attributes significantly influenced provider choice, with physician competence emerging as the most decisive factor. Specifically, respondents were willing to pay approximately KRW 11.26 million more for a provider with very high physician competence rather than one with average competence, indicating a substantially greater WTP than for any other attributes. These findings underscore the critical role of perceived medical quality in provider selection.
The main findings of this study suggest that from the patient’s perspective, perceived quality of care and physician competency play a decisive role in the selection of healthcare providers. The study also sheds light on the underlying causes of patient outflow from Jeju. In Jeju, distrust in local healthcare institutions is rapidly shared and reinforced through word-of-mouth, creating a self-perpetuating cycle of avoidance and preference for Seoul-based hospitals. This structural problem cannot be resolved solely through expanding physical infrastructure or medical personnel. Rather, it requires a sustainable and high-quality healthcare system that earns the trust of local residents over time
By applying a discrete choice experiment, this study offers a quantitative assessment of the key factors influencing hospital choice among Jeju residents. The findings provide practical policy implications for improving local healthcare services and reducing patient outflow. In particular, the study emphasizes that enhancing the quality of local medical care and rebuilding public trust must go hand-in-hand to ensure the sustainability of the regional healthcare system.