Revising the RAWP formula: indexing deprivation and modelling demand

Roy Carr-Hill ()
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Roy Carr-Hill: Centre for Health Economics, The University of York

No 041chedp, Working Papers from Centre for Health Economics, University of York

Abstract: The RAWP formula for the allocation of health care resources between Regional Health Authorities is being revised. It is being suggested that a socio-economic factor should be included as a measure of deprivation as well as the mortality rates. The favoured measure, the Jarman index, is methodologically confused, based on out-of-date data, and uninterpretable. Further, the analysis which has been commissioned appears to reply on hospital use data as a proxy for need. This is essentially a conservative approach and will need to a formula reflecting existing practices rather than need. Proposed ‘adjustments’ for availability are inadequate in the absence of a full-scale model. The derivation of a formula should be theoretically based, it should take proper account of supplier-induced demand, and there should be explicit and comprehensible criteria for accepting a formula as an improvement on the current one.

Keywords: RAWP (search for similar items in EconPapers)
Pages: 28 pages
Date: 1988
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