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Activity based financing in England: the need for continual refinement of payment by results

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Author Info
STREET, ANDREW
MAYNARD, ALAN
Abstract

The English National Health Service is introducing activity based tariff systems or Payment by Results (PbR) as the basis for hospital funding. The funding arrangements provide incentives for increasing activity, particularly day surgery, and, uniquely, are based on costing data from all hospitals. But prices should not be based on average costs and the potential of PbR to improve the quality of care is yet to be exploited. Without refinement, PbR threatens to undermine expenditure control, to divert resources away from primary care, and to distort needs based funding.

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File URL: http://journals.cambridge.org/abstract_S174413310700429X
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Publisher Info
Article provided by Cambridge University Press in its journal Health Economics, Policy and Law.

Volume (Year): 2 (2007)
Issue (Month): 04 (October)
Pages: 419-427
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:cup:hecopl:v:2:y:2007:i:04:p:419-427_00

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  1. Zeynep Or & Thomas Renaud & Laure Com-Ruelle, 2009. "One price for all? Sources of cost variations between public and private hospitals," Working Papers DT25, IRDES institut for research and information in health economics, revised May 2009. [Downloadable!]
  2. Zeynep Or & Thomas Renaud, 2009. "Activity based payment in hospitals: Principles and issues drawn from the economic literature and country experiences," Working Papers DT23, IRDES institut for research and information in health economics, revised Mar 2009. [Downloadable!]
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This page was last updated on 2009-12-13.


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