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Subregional resource allocations in the National Health Service.

A H Snaith

    Journal of Epidemiology and Community Health
    |March 1, 1978
    PubMed
    Summary

    The national resource allocation formula is unsuitable for district financial targets. Effective resource distribution requires recognizing diverse health authority needs and shifting to service-based budgeting.

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    Area of Science:

    • Health economics
    • Healthcare management
    • Public health policy

    Background:

    • The Resource Allocation Working Party proposed a national formula for health financial targets in England.
    • Previous resource allocation models focused on regional targets, with less consideration for district-level financial planning.

    Purpose of the Study:

    • To critically evaluate the validity of the national resource allocation formula for district financial targets.
    • To explore the necessary conditions for achieving meaningful changes in local resource distribution.

    Main Methods:

    • Critical analysis of the proposed national resource allocation formula.
    • Review of research on medical needs and outcomes.
    • Conceptual examination of resource management strategies in health authorities.

    Main Results:

    • The national formula is deemed inappropriate for setting district financial targets.
    • Research on medical needs and outcomes alone is insufficient for equitable resource redistribution.
    • Health authorities possess diverse capabilities to address medical needs.

    Conclusions:

    • A shift from institutional to service budgeting is essential for effective resource management.
    • Recognizing the varied approaches health authorities can take to meet needs is crucial for local resource distribution.
    • Policy changes must consider both the formula's limitations and the operational flexibility of health authorities.

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