Primary Care Groups: Trade-Offs in Managing Budgets and Risk

Abstract

The NHS reforms introduced on 1 April 1999 were intended to remove competition and promote co-operation in the delivery of health care. This was to be achieved in part by the development of joint working by groups of General Practitioner (GP) practices covering populations of around 100,000-known as Primary Care Groups (PCGs). A key element is the integration of responsibility for managing both the clinical and financial aspects of delivering health care. The authors report on the success of this new joint role, based on findings from a national survey. There are trade-offs in choosing the scale at which to encourage GPs to take on their new roles. Smaller groups will be better able to integrate practices's clinical and financial responsibilities, while larger groups will have less financial risk due to random variation.

JEL Classification: I11, I12