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- W2167298250 abstract "EXECUTIVE SUMMARYThis report was commissioned by the Department of Health to look into more detail into theadministrative costs of Payment by Results (PbR). Costs were estimated to have increasedby around £100k-£180k in hospital trusts and from £90k to £190k in Primary Care Trusts.Most of the additional expenditure is due to recruitment of additional staff.We use an established economic framework to provide an analytical structure to understandhow administrative – or transactions - costs have been affected by the change in contractingarrangements following the introduction of PbR.The move to PbR is expected to have reduced the costs associated with price negotiation butincreased the effort required to manage activity and the costs of collecting and verifying themore highly specified (patient-level) data upon which PbR is founded.Moreover, the introduction of PbR in England is likely to have increased administrative costsby a greater amount than that experienced in other countries, because of England’s relativelylow costs of general management and administration and less sophisticated clinical codingand costing systems.We undertook interviews in three hospital Trusts and three Primary Care Trusts in Londonand South Yorkshire in order to gain greater understanding of the impact of PbR onadministrative costs.The six organisations incurred additional costs of between £90k-£190k. Most of the additionalexpenditure is due to the recruitment of additional staff. As such, the cost increase is unlikelyto prove temporary.Some organisations have also invested in improved information systems, but whether thisshould be attributed solely to PbR is questionable. Organisations are required to makeongoing investments in information technology, though PbR may have provided greaterimpetus for such investment.The main types of activity that account for increased administrative costs are:(continues..)" @default.
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- W2167298250 date "2006-07-01" @default.
- W2167298250 modified "2023-09-27" @default.
- W2167298250 title "The administrative costs of payment by results" @default.
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