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Developing Needs-based Funding Formulae Using Individual-level Linked Survey and Utilization Data: An Application to Home Care Services in Ontario, Canada

Author

Listed:
  • Jeremiah Hurley

    (Department of Economics, Centre for Health Economics and Policy Analysis, Department of Clinical Epidemiology and Biostatistics, McMaster University)

  • Brian Hutchison

    (Centre for Health Economics and Policy Analysis, Department of Clinical Epidemiology and Biostatistics, Department of Family Medicine, McMaster University)

  • Gioia Buckley

    (Centre for Health Economics and Policy Analysis, Department of Clinical Epidemiology and Biostatistics, McMaster University)

  • Christel Woodward

    (Centre for Health Economics and Policy Analysis, Department of Clinical Epidemiology and Biostatistics, McMaster University)

Abstract

A common goal of health policy is to allocate public health care resources according to need. This paper presents a method for developing needs-based funding formulae using individual-level linked health survey and utilization data. Needs-based funding shares are developed in three basic stages: (1) estimate the full utilization model, including both need-related and non-need-related adjustors; (2) predict individual-level needs-based home care utilization holding all non-need factors constant; use individual-level estimates and sample weights to develop regional needs-based allocations. The results suggest that methods based on such data offer considerable potential; however, they all raise several new challenges.

Suggested Citation

  • Jeremiah Hurley & Brian Hutchison & Gioia Buckley & Christel Woodward, 2004. "Developing Needs-based Funding Formulae Using Individual-level Linked Survey and Utilization Data: An Application to Home Care Services in Ontario, Canada," Centre for Health Economics and Policy Analysis Working Paper Series 2004-01, Centre for Health Economics and Policy Analysis (CHEPA), McMaster University, Hamilton, Canada.
    • Handle: RePEc:hpa:wpaper:200401
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    File URL: http://www.chepa.org/Files/Working%20Papers/04-01.pdf
    File Function: First version, 2004
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    Cited by:

    1. Jeremiah Hurley & G. Emmanuel Guindon & Vicki Rynard & Steve Morgan, 2008. "Publicly funded medical savings accounts: expenditure and distributional impacts in Ontario, Canada," Health Economics, John Wiley & Sons, Ltd., vol. 17(10), pages 1129-1151, October.

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