What is it about?

The financial stability of Clinical Commissioning Groups (CCGs) in England is rarely discussed. However, any capitation funded organization must balance the costs of providing healthcare against a fixed income. Financial failure is assumed to be due to management incompetence. However, both size and location affect the year-to-year volatility in costs - an effect which has never been acknowledged.

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Why is it important?

Government policy makes assumptions regarding how health care costs are supposed to behave over time. These assumptions fail in the real world where cyclic behavior and high volatility are the norm rater than the exception

Perspectives

Health care organisation in the English NHS are constantly blamed for financial failure and poor financial planning. Alas this only exposes the ignorance of the policy makers, see http://www.hcaf.biz/2010/Publications_Full.pdf A 4-Part series on financial and capacity risk has been subsequently published in Journal of Healthcare Finance, winter 2021 http://www.healthfinancejournal.com/~junland/index.php/johcf/index

Dr Rodney P Jones
Healthcare Analysis & Forecasting

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This page is a summary of: Volatile inpatient costs: CCG financial stability, British Journal of Healthcare Management, May 2012, Mark Allen Group,
DOI: 10.12968/bjhc.2012.18.5.251.
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