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EQUITY AND EFFICIENCY: CLARIFYING CONFUSION FOR ENGLISH ACUTE HOSPITALS
Author(s) -
Bevan Gwyn,
Brazier John
Publication year - 1985
Publication title -
financial accountability and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.661
H-Index - 44
eISSN - 1468-0408
pISSN - 0267-4424
DOI - 10.1111/j.1468-0408.1985.tb00252.x
Subject(s) - confusion , equity (law) , business , accounting , financial system , actuarial science , psychology , political science , law , psychoanalysis
Effective management of health care resources includes containing total costs and improving equity and efficiency. It has been argued that the only way to contain costs is by determining future finance by the principle of capitation. That principle underlies English health authorities' revenue targets which are intended to set the direction for future equitable cash allocations. A case study of an inner‐city authority illustrates how its target for acute services confuses equity and efficiency. It is argued that equity is most effectively promoted not by devolving responsibility for equity to such authorities by financial targets, but by higher‐level, service‐based strategies. Indicators are suggested which enable distinctions to be made between equity and efficiency.