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A New Formula for Distributing Hospital Funds in England

Author

Listed:
  • Roy A. Carr-Hill

    (Centre for Health Economics, University of York, York YO1 5DD, England)

  • Geoffrey Hardman

    (Centre for Health Economics, University of York, York YO1 5DD, England)

  • Stephen Martin

    (Department of Economics and Related Studies, University of York)

  • Stuart Peacock

    (Centre for Health Program Evaluation, Monash University, Victoria 3078, Australia)

  • Trevor A. Sheldon

    (NHS Centre for Reviews and Dissemination, University of York)

  • Peter C. Smith

    (Department of Economics and Related Studies, University of York)

Abstract

The British National Health Service delivers the great majority of the country's health care. One of the key policy problems confronting the organization is how its funds should be allocated to different parts of the country. We developed indices of health care needs based on empirical hospital utilization data. The national government now uses the indices as the basis for allocating a large part of NHS funds to health authorities. Moreover, the success of the project has encouraged the government to seek to introduce needs indices for the entire NHS budget, and the study team is now extending the area of application to the broader public sector. The study has therefore demonstrated that scientific management methods can have a profound impact at a high level of national policy.

Suggested Citation

  • Roy A. Carr-Hill & Geoffrey Hardman & Stephen Martin & Stuart Peacock & Trevor A. Sheldon & Peter C. Smith, 1997. "A New Formula for Distributing Hospital Funds in England," Interfaces, INFORMS, vol. 27(1), pages 53-70, February.
    • Handle: RePEc:inm:orinte:v:27:y:1997:i:1:p:53-70
    DOI: 10.1287/inte.27.1.53
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    Citations

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    Cited by:

    1. Rob Ball & David Eiser & David King, 2015. "Assessing Relative Spending Needs of Devolved Government: The Case of Healthcare Spending in the UK," Regional Studies, Taylor & Francis Journals, vol. 49(2), pages 323-336, February.
    2. Xiuli Chao & Liming Liu & Shaohui Zheng, 2003. "Resource Allocation in Multisite Service Systems with Intersite Customer Flows," Management Science, INFORMS, vol. 49(12), pages 1739-1752, December.
    3. Francesco Longo & Karl Claxton & Stephen Martin & James Lomas, 2023. "More long‐term care for better healthcare and vice versa: investigating the mortality effects of interactions between these public sectors," Fiscal Studies, John Wiley & Sons, vol. 44(2), pages 189-216, June.

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