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Hospital cost differences and payment by results

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  • MALCOMSON, JAMES M.

Abstract

Street and Maynard (2007) argue the case for refining the system of payment by results currently being introduced for English hospitals. On the basis of international experience, they recommend, among other things, moving away from setting prices equal to average cost towards setting them equal to best practice costs, adjusting them for quality and using them to signal what activities are desirable. They also discuss how to control total expenditure for primary care trusts (PCTs) under payment by results and question the merits of extending payment by results to mental health services, ambulances, community services, and long-term conditions, ‘where it is difficult to describe patient care requirements and cost variations may be high’ (p. 9).

Suggested Citation

  • Malcomson, James M., 2007. "Hospital cost differences and payment by results," Health Economics, Policy and Law, Cambridge University Press, vol. 2(4), pages 429-433, October.
    • Handle: RePEc:cup:hecopl:v:2:y:2007:i:04:p:429-433_00
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    Cited by:

    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.
    2. Sutherland, Jason M., 2015. "Pricing hospital care: Global budgets and marginal pricing strategies," Health Policy, Elsevier, vol. 119(8), pages 1111-1118.
    3. Anne Mason & Maria Goddard, 2009. "Payment by results in mental health: A review of the international literature and an economic assessment of the approach in the English NHS," Working Papers 050cherp, Centre for Health Economics, University of York.

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