§ Mr. Tony Lloydasked the Secretary of State for Social Services what is the purpose of review of the resources allocation working party formula with respect to teaching authorities; and if he will make a statement.
§ Mr. NewtonThe review of the resource allocation working party formula was established to explore the scope for improving the way in which the formula estimates relative need for health services across the country. The allowance made in the formula for the additional service costs of teaching hospitals — the service increment for teaching — was among the issues identified for examination.
The NHS Management Board's initial Report on the Review concluded that there was scope for improvement in a number of aspects of the formula, but a further programme of analysis and research was required. This work is now under way, and includes an attempt to estimate all the elements in the additional costs of teaching hospitals in providing health services, including case mix and the service implications of teaching and research and development. Full details are set out in the report, a copy of which is available in the Library.