Use of risk adjustment in setting budgets and measuring performance in primary care I: how it works

Summary points: Primary care groups and general practices will be funded largely through capitation based formulas, and their performance will be monitored more closely. Current methods of funding primary care trusts and general practices, and of monitoring their performance, do not take into account differences in case mix. Risk adjustment methods have been developed in the United States to allow measurement ofcase mix and morbidity of primary care populations. Risk adjustment methods are now being used to set capitation rates for health services in the United States