What is it about?
Especially for medical conditions diagnosis is a very poor predictor of acuity and costs. This leads to gross anomalies in the HRG tariff. These anomalies are further enhanced by the erroneous assumption that the same HRG must cost the same across multiple specialties.
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Why is it important?
The HRG tariff was marketed as a 'world leading' costing system. Alas, this was purely 'spin'. Examination of the HRG tariff reveals multiple layers of flawed assumptions. Given the volatility in emergency admissions all the tariff has achieved was to amplify financial risk and financial planning uncertainty. A class ic lesson in policy running rampant and ignoring reality.
Perspectives
This is part of an extended series of articles examining multiple flaws in the HRG tariff. If you are thinking of developing a tariff system do not copy the HRG system in England, however, learn from the multiple mistakes which have been glossed over. See http://www.hcaf.biz/2010/Publications_Full.pdf
Dr Rodney P Jones
Healthcare Analysis & Forecasting
Read the Original
This page is a summary of: Is the health resource group (HRG) tariff fit for purpose?, British Journal of Healthcare Management, January 2012, Mark Allen Group,
DOI: 10.12968/bjhc.2012.18.1.52.
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