Derivation of a needs based capitation formula for allocation prescribing budgets
This document reports the results of a study commissioned by the NHS Executive to examine the determinants of the NHS practice level prescribing expenditures. The purpose was to develop a needs based capitation formula for allocating annually approximately £4.5 billion of NHS revenues to Health Authorities and thence Primary Care Groups in England. The work was reported to the Advisory Committee on Resource Allocation and their technical advisory sub-group, TAG. The methods and modelling were therefore subject to a great deal of scrutiny with various sensitivity tests and alternative model specifications being proposed at almost every stage. This has resulted in the development of a robust model, but also explains some of the “stop-go” nature of the analysis reported in the text. The report sets out the background to the study, describes the data on which it is based, explains the statistical methodology used, and presents the finding. The implications for revenue allocations to Primary Care Groups are not discussed in this report.
|Date of creation:||Jan 1999|
|Date of revision:|
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