What is it about?
The reference cost index is a weighted score which compares the costs in each hospital to the national average. Due to serious flaws in the HRG tariff the national average cost in each HRG is not a valid basis for cost comparison. Hospital size and complexity plays a greater role than efficiency per se.
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Why is it important?
Clearly other methods are required to assess hospital efficiency.
Perspectives
The HRG tariff has been promoted by English government agencies is 'best in class' and 'world leading'. My extensive research shows it to be a rather poor example of a costing and pricing system. See http://www.hcaf.biz/2010/Publications_Full.pdf
Dr Rodney P Jones
Healthcare Analysis & Forecasting
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This page is a summary of: Limitations of the HRG tariff: the RCI, British Journal of Healthcare Management, February 2009, Mark Allen Group,
DOI: 10.12968/bjhc.2009.15.2.39184.
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