Analysis of the ability of the new needs adjustment formula to improve the setting of weighted capitation prescribing budgets in English general practice

Abstract

The existing weighted capitation formula used for setting prescribing budgets in English general practice has known limitations. A new needs adjustment formula was designed to address many of these limitations. As the new formula was developed using a similar procedure for identifying patients' needs, it embodies some of the limitations of its predecessor. In particular, the new formula may have institutionalised historical prescribing patterns and may fail to measure patients' needs directly. The new formula should be subjected to piloting and a formal evaluation before it is recommended for use nationally.