Journal article

Modelling supply and demand influences on the use of health care: implications for deriving a needs-based capitation formula

H Gravelle, M Sutton, S Morris, F Windmeijer, A Leyland, C Dibben, M Muirhead

HEALTH ECONOMICS | JOHN WILEY & SONS LTD | Published : 2003

Abstract

Many health-care systems allocate funding according to measures of need. The utilisation approach for measuring need rests on the assumptions that use of health care is determined by demand and supply and that need is an important element of demand. By estimating utilisation models which allow for supply it is possible to isolate the socio-economic and health characteristics which affect demand. A subset of these variables can then be identified by a combination of judgement and further analysis as needs variables to inform funding allocations. We estimate utilisation models using newly assembled data on admissions to acute hospitals, measures of supply, morbidity and socio-economic characte..

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