Investigating costs and performance of mental health care providers in England

Monday 24 November 2014, 12.30PM to 1.30pm

Speaker(s): Valerie Moran

In England, funding for mental health care services is moving from block budgets to a prospective activity-based payment system based on patient needs rather than diagnosis.  This new payment system should incentivise providers to deliver high-quality care and increase efficiency of resource use.  The relative resource use, outcomes and performance of mental health care providers in England are comparatively under-researched.  My PhD research aims to add to existing evidence in this field by investigating provider performance in terms of costs and outcomes in order to anticipate how providers will respond to the incentives contained within the new payment system.  At an international level, many countries are experimenting with innovative payment systems that incentivise cost efficiency and quality improvement so the findings of my research will be of interest to policymakers not only in England, but also further afield.

Under the new provider payment system, it is intended that a fixed price or tariff based on the national average cost will be introduced.  This will provide an incentive for providers to increase efficiency as providers with costs above the national average will be at financial risk while those with below average costs will make financial gains.  The main data sources for this research are the Mental Health Minimum Data Set (MHMDS) and NHS Reference Costs.  The residual variation in costs at the provider level is quantified using Empirical Bayes estimates and comparative standard errors used to rank and compare providers.  This unexplained variation in provider-level costs can be interpreted as differences in performance/efficiency in terms of resource use and will provide indications into which providers may be at risk of financial instability when a national tariff is introduced.

Valerie Moran is a PhD student who has held positions at the Organisation for Economic Co-Operation and Development (OECD), the World Bank and the National University of Ireland, Galway before joingin the Centre for Health Economics at York.

Here is a map of Alcuin C Block for directions on campus.

Location: Alcuin C Block - Department of Social Policy and Social Work. Room 209 (second floor)

Admission: Free and open to everyone. Please come along and bring your lunch if needed.