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Reference costs and the pursuit of efficiency in the "new" NHS
 — (The York series on the NHS White Paper - a research agenda)
Author(s)Diane Dawson, Andrew Street
Corporate AuthorCentre for Health Economics, York Health Economics Consortium, NHS Centre for Reviews and Dissemination, University of York
PublisherUniversity of York, York, 1998
Pages34 pp (Centre for Health Economics Discussion paper, 161)
SourcePublications Centre, Centre for Health Economics, University of York YO10 5DD.
KeywordsNational Health Service ; Health Authorities and Trusts ; Costs [care] ; Management [care] ; Performance ; Indicators.
AnnotationBoth the White Paper, `The new NHS', and the later consultation document, `A national framework for assessing performance', stress the need to develop new instruments to tackle inefficiency in the NHS (National Health Service). Among these instruments, it has been proposed to benchmark Trusts, and by association Health Authorities, using Healthcare Resource Group (HRG) costs. The NHS Executive has published plans for a system of `reference costs' that will itemise the cost of every treatment in every Trust. These reference costs will be derived from costing HRGs, and are to be used for many purposes: benchmarking cost improvement; measuring relative efficiency; identifying best practice; funding transfers; and costing health improvement programmes. This paper examines the construction of reference costs; considers incentives to use the information appropriately; and asks whether a single construct, the costed HRG, can be expected to contribute successfully to its many intended functions of regulation and management. (RH).
Accession NumberCPA-981201210 B
ClassmarkL4: L4A: QDC: QA: 5H: 3RI

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