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Since the publication of the report of the Resource Allocation Working Party in 1976,1 the allocation of resources to hospital and community health services has become progressively more complicated and controversial.2,3 The review of the Resource Allocation Working Party's formula in 1988, which resulted in the introduction of a weighted capitation formula, was widely criticised.4,5 Particular concern was expressed about how analyses of variations in hospital use among small areas were used to generate indicators of need.
Prompted by the availability of new data from the
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