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Risk and the GP budget holder

Author

Listed:
  • Stephen Martin
  • Nigel Rice

    (Centre for Health Economics, The University of York)

  • Peter Smith

    (Centre for Health Economics, The University of York)

Abstract

For most individuals, the use made of health care in a given year is determined principally by unpredictable random incidents. Of course, some individuals have a predictably higher predisposition to illness than others. However, the general consensus is that only a fraction of individual variability in health care costs can be predicted. The purpose of this paper is to explore the implications of this inherent randomness for budget setting for GP purchasers. The paper argues that variability in utilization in the NHS is very high; that no formula will ever completely capture that variability, even for large populations; that the problem of variability is likely to be very acute for a GP practice; and that health authorities and GP budget holders will therefore need to adopt a range of strategies to manage the variability.

Suggested Citation

  • Stephen Martin & Nigel Rice & Peter Smith, 1997. "Risk and the GP budget holder," Working Papers 153chedp, Centre for Health Economics, University of York.
    • Handle: RePEc:chy:respap:153chedp
    as

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    File URL: http://www.york.ac.uk/media/che/documents/papers/discussionpapers/CHE%20Discussion%20Paper%20153.pdf
    File Function: First version, 1997
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    References listed on IDEAS

    as
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    5. Harold Pollack & Richard Zeckhauser, 1996. "Budgets as Dynamic Gatekeepers," Management Science, INFORMS, vol. 42(5), pages 642-658, May.
    6. Hopwood, Ag, 1972. "Empirical Study Of Role Of Accounting Data In Performance Evaluation," Journal of Accounting Research, Wiley Blackwell, vol. 10, pages 156-182.
    7. Hopwood, Ag, 1972. "Empirical Study Of Role Of Accounting Data In Performance Evaluation - Reply," Journal of Accounting Research, Wiley Blackwell, vol. 10, pages 189-193.
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    Cited by:

    1. Pettigrew, Luisa M. & Kumpunen, Stephanie & Rosen, Rebecca & Posaner, Rachel & Mays, Nicholas, 2019. "Lessons for ‘large-scale’ general practice provider organisations in England from other inter-organisational healthcare collaborations," Health Policy, Elsevier, vol. 123(1), pages 51-61.

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    Keywords

    fundholding;

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