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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
PubMed
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.

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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.

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  • 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.