Hybrid risk adjustment for pharmaceutical benefits
AbstractThis paper analyses the application of hybrid risk adjustment versus either prospective or concurrent risk adjustment formulae in the context of funding pharmaceutical benefits for the population of an integrated healthcare delivery organization in Catalonia during years 2002 and 2003. We apply a mixed formula and find that a hybrid risk adjustment model increases incentives for efficiency in the provision of low risk individuals at health organizations not only as a whole but also at each internal department compared to only prospective models by reducing within-group variation of drug expenditures.
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Bibliographic InfoPaper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Economics Working Papers with number 1139.
Date of creation: Jan 2009
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Web page: http://www.econ.upf.edu/
Drug expenditure; hybrid risk-adjustment; morbidity; clinical risk groups;
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- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
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