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See Latest ArticlesThe actuarial basis for financial risk in practice-based commissioning and implications to managing budgets
Primary Health Care Research & Development, 07/01/09
Jones R - The aim of this paper is to be both educational and thought provoking. The financial risk associated with acute budgets is an issue which affects everyone in primary care, and the calculation of the size of the financial risk is explained in an easy-to-understand way. The shift in financial responsibility toward practice-based commissioning (PBC) opens the need for a deeper understanding of the actuarial basis of financial risk in healthcare purchasing. This paper first presents the statistical basis for this risk and then looks at the implications to the day to day running of practice budgets, such as what type of reports will be needed, budgets for practices in a group and the issue of overspends.
Rod Jones, 07/01/09
| The allocation of budgets for acute services to primary care physicians appears to be an international trend. The hidden assumption is that primary care is capable of making large cost savings and that these cost savings are not lioable to erosion via chance events. This paper presents the evidence that chance plays a significant role in small budgets and budgets for groups covering less than 100,000 head of population could be subject to considerable chnace-based volatility. |
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