§ Mr. LawsTo ask the Secretary of State for Health for what reasons the expenditure by weighted head by health authorities and primary care trusts is different in Dorset health authority from that in Somerset health authority; and if he will make a statement. [32560]
§ Ms Blears[holding answer 6 February 2002]: Expenditure per weighted head cannot be reliably compared between different health authorities and primary care trusts. Somerset health authority had no primary care trusts in 2000–01 and Dorset health authority had four primary care trusts.
In many health authorities there are factors which distort the expenditure per head. These include: the health authority acting in a lead capacity to commission health care or fund training on behalf of other health bodies; asset revaluations in national health service trusts being funded through health authorities; and some double counting of expenditure between health authorities and primary care trusts within the health authority area.
In the case of Dorset and Somerset health authorities, all the above factors occur which distort the expenditure per weighted head of population.
Allocations per weighted head of population provide a much more reliable measure to identify differences between funding of health authorities.
Health authorities and primary care trusts should account for their expenditure on a gross basis. This results in a considerable element of double counting in Dorset where the health authority acts as the main commissioner and is then reimbursed by the primary care trusts. The effect of this double counting cannot be identified exactly from the accounts.