What is it about?
The calculated average cost for every HRG used in the English NHS to pay providers is subject to very high statistical uncertainty due to sampling error. This increases as the number of admissions reduces such that any HRG with less than 100 admissions has greater than a 10% apparent standard deviation.
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Why is it important?
HRG prices/costs can jump violently from one year to the next. This creates huge uncertainty in financial forecasts. Indeed this intrinsic volatility strongly argues against the purchaser/provider split operating in the NHS in England.
Perspectives
The HRG tariff contains may serious flaws which have never been publicly acknowledged. Indeed the HRG tariff contributes to high financial risk. For further articles 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: the national average, British Journal of Healthcare Management, November 2011, Mark Allen Group,
DOI: 10.12968/bjhc.2011.17.11.556.
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