Allocating resources to health authorities: Development of method for small area analysis of use of inpatient services.

R A Carrhill, T A Sheldon, P Smith, S Martin, S Peacock, G Hardman

Research output: Contribution to journalArticlepeer-review


Every year about pound 22 billion is allocated to health authorities for hospital and community services in England. The distribution of most of these funds is based on a formula developed to reflect the population's needs, but the existing formula has been criticised on several grounds. This paper describes the development of a method to determine the health needs for small geographical areas. Data from the hospital episodes statistics and 1991 census together with information on vital statistics and supply of health care facilities were used in the model. Two stage least squares regression was used to identify true indicators of need, and these were entered into a multilevel model to take account of variations in practice in different health authorities. The resulting formula should be more statistically robust and more sensitive to needs than previous approaches.

Original languageEnglish
Pages (from-to)1046-1049
Number of pages4
JournalBritish medical journal
Issue number6961
Publication statusPublished - 22 Oct 1994


  • NHS

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