Related Experiment Videos
Variations in general practice prescribing costs and implications for budget setting
A T Healey1, B F Yule, J P Reid
1Health Economics Research Unit, University of Aberdeen, Scotland.
Health Economics
|January 1, 1994
Summary
General practice prescribing costs in the UK are influenced by patient demographics and practice characteristics. Regression analysis explains 97% of prescribing cost variations, aiding equitable budget allocation.
Area of Science:
- Health Economics
- General Practice
- Healthcare Management
Background:
- Prescribing amounts are established in UK general practice.
- Variations in GP prescribing behavior impact prescribing budgets.
Purpose of the Study:
- To examine the implications of GP prescribing behavior variations for budget determination.
- To establish the extent to which practice prescribing costs can be explained by factors for a weighted capitation formula.
Main Methods:
- Regression analysis was used to analyze practice prescribing costs.
- Factors considered included list size, patient age, deprivation, and "inducement payments".
Main Results:
- 97% of practice prescribing cost variation is explained by list size, proportion of elderly patients, deprivation, and inducement payments.
- These factors are significant predictors of prescribing expenditure.
Conclusions:
- A resource allocation formula based on regression analysis can promote horizontal equity (equal budgets for equal need).
- Implications for vertical equity and efficiency in budget setting are ambiguous.