What is it about?
The market forces factor (MFF) is a sophisticated method for determining the contribution from local factors (housing, wages, etc) on the costs of running a hospital. Different assumptions in the HRG tariff and the funding formula act to create an additional layer cost imbalances not reflected in the MFF.
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Why is it important?
The concept of fair funding and fair hospital costs falls foul of a multitude of hidden assumptions in the way in which provider and purchaser are funded in the English NHS.
Perspectives
Government agencies fail to acknowledge that even the best methods contain hidden flaws and assumptions which create layers of financial imbalance in the purchaser/provider split in the NHS. See http://www.hcaf.biz/2010/Publications_Full.pdf
Dr Rodney P Jones
Healthcare Analysis & Forecasting
Read the Original
This page is a summary of: Limitations of the HRG tariff: local adjustments, British Journal of Healthcare Management, March 2009, Mark Allen Group,
DOI: 10.12968/bjhc.2009.15.3.40164.
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