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A New Formula for Distributing Hospital Funds in England

Roy A. Carr-Hill, Geoffrey Hardman, Stephen Martin, Stuart Peacock, Trevor A. Sheldon and Peter C. Smith
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Roy A. Carr-Hill: Centre for Health Economics, University of York, York YO1 5DD, England
Geoffrey Hardman: Centre for Health Economics, University of York, York YO1 5DD, England
Stuart Peacock: Centre for Health Program Evaluation, Monash University, Victoria 3078, Australia
Trevor A. Sheldon: NHS Centre for Reviews and Dissemination, University of York
Peter C. Smith: Department of Economics and Related Studies, University of York

Interfaces, 1997, vol. 27, issue 1, 53-70

Abstract: The British National Health Service delivers the great majority of the country's health care. One of the key policy problems confronting the organization is how its funds should be allocated to different parts of the country. We developed indices of health care needs based on empirical hospital utilization data. The national government now uses the indices as the basis for allocating a large part of NHS funds to health authorities. Moreover, the success of the project has encouraged the government to seek to introduce needs indices for the entire NHS budget, and the study team is now extending the area of application to the broader public sector. The study has therefore demonstrated that scientific management methods can have a profound impact at a high level of national policy.

Keywords: government; programs; health care; epidemiology (search for similar items in EconPapers)
Date: 1997
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Citations: View citations in EconPapers (3)

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