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Programme budgeting and marginal analysis: an approach to priority setting in need of refinement
Journal of Health Services Research & Policy
|June 6, 1996
Summary
Programme budgeting with marginal analysis is being revived in the UK's National Health Service for strategic planning. However, current methods for identifying evaluation options are flawed, requiring a more systematic approach for better results.
Area of Science:
- Health economics
- Healthcare management
- Public health policy
Background:
- Programme budgeting and marginal analysis (PBMA) is gaining traction in the UK's National Health Service (NHS).
- PBMA aims to map healthcare activities and expenditures to populations.
- It seeks to improve strategic planning by identifying optimal resource reallocation within healthcare programmes.
Purpose of the Study:
- To evaluate the effectiveness of current PBMA methods in the NHS.
- To identify methodological deficiencies in the application of PBMA.
- To propose a more systematic technique for identifying options for evaluation within PBMA.
Main Methods:
- Analysis of the coupling of programme budgeting with marginal analysis in the NHS.
- Critique of the current approach to identifying options for evaluation.
- Development of a systematic technique to address methodological flaws.
Main Results:
- PBMA is being revived for strategic planning and resource reallocation in the NHS.
- Current methods for identifying evaluation options are flawed, particularly the reliance on 'expert' groups.
- Existing approaches have yielded mixed results due to methodological limitations.
Conclusions:
- The current application of PBMA in the NHS requires refinement.
- A more systematic approach is needed to identify evaluation options, moving beyond reliance on expert groups.
- Improved methodologies can enhance the effectiveness of PBMA in increasing net benefits through resource reallocation.
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