How is the money distributed to local NHS organisations?
Most NHS funds are distributed using a “weighted capitation” resource allocation formula that aims to target resources at the neediest areas. Using basic indicators of need, the formula sets a target allocation for each health authority and each year ministers decide how quickly authorities should be moved towards this target. This year health authorities in England receive an average 7.2% real terms increase. The range of increases span from 8.96% in Kensington, Chelsea and Westminster to 6.65% in East Surrey. A new formula is being devised that will enable allocations to be made directly to primary care trusts. This is expected to be ready by the 2003-04 financial year. What are the health service’s spending priorities? In England the three main national spending priorities for 2002-03 are: building capacity and increasing activity levels in the NHS (recruiting more staff, building more facilities); reducing waiting times – particularly for cardiac patients, and investing in primary
