Related Experiment Videos
Can there be fair funding for fundholding practices?
1Health Services Research Unit, London School of Hygiene and Tropical Medicine.
BMJ (Clinical Research Ed.)
|March 19, 1994
Summary
Fundholding practice budgets are inequitably allocated due to resource allocation based on care used. Health authorities need fairer funding methods and should investigate spending on non-fundholding practices for equitable resource distribution.
Area of Science:
- Health economics
- Healthcare management
- Public health policy
Background:
- Regional health authorities allocate budgets to fundholding practices based on population care utilization.
- This method often results in inequitable resource distribution between fundholding and non-fundholding practices.
Purpose of the Study:
- To explain the inequity in resource allocation for fundholding practices.
- To discuss efforts towards fairer funding mechanisms in the North West Thames region.
- To outline steps for health authorities to address funding disparities.
Main Methods:
- Analysis of resource allocation methods used by regional health authorities.
- Case study of the North West Thames region's experience with funding reforms.
- Review of potential alternative budget-setting strategies.
Main Results:
- The current practice-based activity funding model leads to inequitable resource allocation.
- Fairer funding requires health authorities to investigate spending on non-fundholding practices.
- Alternative budget-setting methods beyond practice-recorded activity are needed.
Conclusions:
- Urgent resolution is needed on compensating fundholder budgets for provider price increases.
- Health authorities must develop and implement equitable resource allocation strategies.
- A move away from activity-based funding towards capitation or other fair methods is recommended.