New allocation formula for primary care prescribing explains nearly two thirds of variation

In order to work out fair allocations of funds for prescribing to the new primary care groups the NHS Executive commissioned a study from Rice et al to examine the determinants of prescribing at practice level (p 284). They used data from 8500 English general practices and regressed total net ingredient cost adjusted for the age, sex, and temporary resident structure of the practice populations on a set of needs variables while controlling for differences in supply characteristics. Four needs variables were identified as drivers of prescribing expenditures: permanent sickness, dependants with no carers, students, and births. The resulting model, together with other adjustments, explained 62% of the variation in prescribing expenditure.

CiteULike    Complore    Connotea    Del.icio.us    Digg    Reddit    StumbleUpon    Technorati    What's this?

Relevant Article

Derivation of a needs based capitation formula for allocating prescribing budgets to health authorities and primary care groups in England: regression analysis • Commentary: The emphasis on transparency weakens the formula

Nigel Rice, Paul Dixon, David C E F Lloyd, David Roberts, and T J Cole
BMJ 2000 320: 284-288. [Abstract] [Full Text] [PDF]