Heald, D. and Scott, D. A. (1995) Charging for capital in the National Health Service in Scotland. Financial Accountability and Management, 11(1), pp. 57-74. (doi: 10.1111/j.1468-0408.1995.tb00396.x)
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Abstract
This article evaluates the capital charging system implemented in the National Health Service in Scotland, probing its intellectual coherence and implementa- tion. Asset valuations may be too high because of the decision to value at Depreciated Replacement Cost (even when higher than market value) and the decision to disregard the issues raised by Modern Equivalent Asset methodology. The incentive effects of capital charges are complex: historically good maintenance may be penalised, and economic and financial appraisal of new projects may give conflicting signals. Capital charging differently affects Hospital Trusts and Directly Managed Units. Moreover, the interaction of capital charging and the public corporation status of Hospital Trusts inflates gross public expenditure on health.
Item Type: | Articles |
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Status: | Published |
Refereed: | Yes |
Glasgow Author(s) Enlighten ID: | Heald, Professor David |
Authors: | Heald, D., and Scott, D. A. |
College/School: | College of Social Sciences > Adam Smith Business School > Accounting and Finance |
Journal Name: | Financial Accountability and Management |
Publisher: | Blackwell Publishing |
ISSN: | 0267-4424 |
ISSN (Online): | 1468-0408 |
Published Online: | 28 June 2008 |
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