What is it about?
Financial risk in health care commissioning is very high. There are a group of conditions over which a GP has no direct control and other conditions show high variation due to individuals with complex conditions such as cancer treatment. Financial stability rapidly increases when up to 35% of the entire budget is covered by a risk pool, although 1 million population is still required to reduce residual risk below +/- 1%
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Why is it important?
Health care commissioning on behalf of a defined population contains high inherent risk. This uncomfortable fact has never been discussed with the NHS and individual organisations are often blamed for the outcomes of this high risk,
Perspectives
Keep the truth hidden and blame the innocent is always a good policy for governments (but perhaps not for the rest of us). Part of a wider series investigating the causes of financial risk in health care commissioning, see http://www.hcaf.biz/2010/Publications_Full.pdf A 4-Part series in Journal of Health Care Finance has updated these concepts, winter 2021 http://www.healthfinancejournal.com/~junland/index.php/johcf/index
Dr Rodney P Jones
Healthcare Analysis & Forecasting
Read the Original
This page is a summary of: Financial risk in health purchasing: risk pools, British Journal of Healthcare Management, June 2008, Mark Allen Group,
DOI: 10.12968/bjhc.2008.14.6.29561.
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