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Related Experiment Video

Updated: Jul 12, 2026

Assessing Cerebral Autoregulation via Oscillatory Lower Body Negative Pressure and Projection Pursuit Regression
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Derivation of a needs based capitation formula for allocating prescribing budgets to health authorities and primary

N Rice1, P Dixon, D C Lloyd

  • 1Centre for Health Economics, University of York, York Y01 5DD. nr5@york.ac.uk

BMJ (Clinical Research Ed.)
|January 29, 2000
PubMed
Summary

A new weighted capitation formula was developed to allocate prescribing expenditures in England. This model explains 62% of prescribing cost variations at the practice level using health and social needs, and supply factors.

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Area of Science:

  • Health economics
  • Public health policy
  • Pharmaceutical management

Background:

  • Accurate allocation of prescribing expenditures is crucial for health authorities and primary care groups.
  • Existing methods may not fully account for variations in patient needs and practice supply.

Purpose of the Study:

  • To develop a weighted capitation formula for equitable prescribing expenditure allocations in England.
  • To identify key drivers of prescribing costs at the practice level.

Main Methods:

  • Regression analysis was used to model prescribing costs.
  • Data from 8500 general practices in England (1997-8) were analyzed.
  • Adjustments were made for age, sex, and temporary resident originated prescribing units (ASTRO(97)-PUs).

Main Results:

  • A needs gradient was identified based on permanent sickness, dependants in no-carer households, students, and births.
  • Health and social needs, along with supply characteristics, explained 41% of prescribing cost variation.
  • Supply characteristics alone explained 35% of total costs per head.

Conclusions:

  • The developed model effectively explains 62% of prescribing expenditure variation at the practice level.
  • The model incorporates plausible drivers of prescribing expenditure, including health and social needs.
  • The findings support the setting of target budgets for prescribing allocations.