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Development of age‐sex adjusted capitation payment: The experience of Iranian public health complexes

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  • Shirin Nosratnejad
  • Reza Esmaeili
  • Jafar Sadegh Tabrizi
  • Alireza Mahboub‐Ahari

Abstract

Background Flat capitations are not necessarily able to compensate health providers equitably due to the variability of resource consumption among different age and sex groups. The aim of this study is to develop a risk adjusted capitation formula as a base for primary health care payment in Health Complexes of Tabriz, in Iran. Method This cross‐sectional study was conducted in four stages: (1) determining health service package, (2) calculating unit cost of services, (3) estimating service utilization, and (4) calculating age/sex weighted capitation. We calculated unit cost of services with and without building and equipment expenses. Data collection was carried out through a data extraction checklist. Data management and analysis was carried out via Microsoft Excel 2007. Result A list of 99 services and their processes were identified and then assigned each to one of 10 categories according to their resource consumption. The lowest and highest unit cost, respectively, belonged to prenatal care and group training by family physicians. The risk adjusted capitation was calculated with and without renting cost of building and equipment, respectively, 347 000 and 332 000 Rials (1 US$ worth 35 000 Iranian Rials). Conclusion The development of health risk adjusted capitation could improve equity in payment system and the efficiency of delivering primary health care services. Estimated weights proposed with our study can be adapted then applied in contexts with similar characteristics.

Suggested Citation

  • Shirin Nosratnejad & Reza Esmaeili & Jafar Sadegh Tabrizi & Alireza Mahboub‐Ahari, 2019. "Development of age‐sex adjusted capitation payment: The experience of Iranian public health complexes," International Journal of Health Planning and Management, Wiley Blackwell, vol. 34(1), pages 183-193, January.
    • Handle: RePEc:bla:ijhplm:v:34:y:2019:i:1:p:e183-e193
    DOI: 10.1002/hpm.2631
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    1. Van de ven, Wynand P.M.M. & Ellis, Randall P., 2000. "Risk adjustment in competitive health plan markets," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 14, pages 755-845, Elsevier.
    2. John C. Langenbrunner & Cheryl Cashin & Sheila O’Dougherty, 2009. "Designing and Implementing Health Care Provider Payment Systems : How-To Manuals," World Bank Publications - Books, The World Bank Group, number 13806.
    3. Verónica Vargas & Juergen Wasem, 2005. "Risk Adjustment and Primary Health Care in Chile," ILADES-UAH Working Papers inv162, Universidad Alberto Hurtado/School of Economics and Business.
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