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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

  • 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)

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.

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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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Paper provided by Centre for Health Economics and Policy Analysis (CHEPA), McMaster University, Hamilton, Canada in its series Centre for Health Economics and Policy Analysis Working Paper Series with number 2004-01.

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Length: 34 pages
Date of creation: 2004
Date of revision:
Handle: RePEc:hpa:wpaper:200401
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