Thispaperdealswiththeissueofprioritysettinginhealthcareunderuncertaintiesabouttheseverityoftheillnessandtheeffectivenessofmedicaltreatment.Weexaminetheeffectofadiseaseuncertainty(atreatmentuncertainty)ontheallocationofhealthcareresourcesinthepresenceofatreatmentrisk(adiseaserisk)andidentifypreferenceconditionsunderwhichthesocialplannerallocatesmoreresourcestohigherriskpopulation.Weallowforthesimultaneouspresenceoftworisksandinvestigatethejointeffectoftwo-sourceuncertaintiesonhealthcareallocationwhenthetworisksareeithersmallorpositivelyquadrantdependent.Theeffectofinequalityaversiononhealthcareallocationisalsoanalyzedbyintroducinganequityweightingfunction.Ourworkextendsthepreviousmodelofhealthcareprioritytotwo-riskframeworkandprovidesnewinsightsintotheproblemofhealthcaredecisionmakingunderuncertainty.
