Standardized Mortality Ratios in Capitation Funding Models: Empirical Issues from Canadian Data

Kelly Bedard (), John Dorland, Allan W. Gregory () and Mark Rosenberg

No 948, Working Papers from Queen's University, Department of Economics

Abstract: Needs based capitation models have been suggested as an alternative to funding methods based on historical utilization patterns. The standardized mortality ratio (SMR) applied in conjunction with an age/gender adjustment is the most widely adopted measure of relative need. This paper addresses a number of important index construction issues using Canadian data. These include the influence exerted by the reference population (national versus provincial), the age structure (excluding people over 64 versus 74), the optimal period over which to average the SMR in order to smooth meaningless fluctuations, and the correspondence between SMRs, standard socio-economic indicators (i.e. unemployment, education, and income), health care 'need', and expenditures.

Keywords: Capitation funding; Standardized mortality ratios; Region; Age; Gender (search for similar items in EconPapers)
Date: 1997-05

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Persistent link: http://EconPapers.repec.org/RePEc:qed:wpaper:948

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