Reducing avoidable inequalities in health: a new criterion for setting health care capitation payments

Hauck, K., Shaw, R. and Smith, P.C. (2002) Reducing avoidable inequalities in health: a new criterion for setting health care capitation payments. Health Economics, 11(8), pp. 667-677. (doi: 10.1002/hec.692)

Abstract

Traditionally, most health care systems which pretend to any sort of rationality and cost control have sought to allocate their limited funds in order to secure equal opportunity of access for equal need. The UK government is implementing a fundamental change of resource allocation philosophy towards contributing to the reduction of avoidable health inequalities. The purpose of this essay is to explore some of the economic issues that arise when seeking to allocate health care resources according to the new criterion. It indicates that health inequalities might arise because of variations in the quality of health services, variations in access to those services, or variations in the way people produce health, and that the resource allocation consequences differ depending on which source is being addressed. The paper shows that an objective of reducing health inequalities is not necessarily compatible with an objective of equity of access, nor with the objective of maximising health gain. The results have profound consequences for approaches towards economic evaluation, the role of clinical guidelines and performance management, as well as for resource allocation methods.

• Item Type: Articles
• Keywords: health care, health, equity, production functions, policy
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Shaw, Dr Rebecca
• Authors: Hauck, K., Shaw, R., and Smith, P.C.
• Subjects: R Medicine > RA Public aspects of medicine; H Social Sciences > HG Finance
• College/School: College of Medical Veterinary and Life Sciences
• Journal Name: Health Economics
• Publisher: John Wiley & Sons
• ISSN: 1057-9230
• Copyright Holders: Copyright © 2002 Wiley and Sons.
• First Published: First published in Health Economics 11(8): 667-677
• Publisher Policy: Reproduced in accordance with the copyright policy of the publisher