Hospital cost modelling for the Northern Ireland Acute Hospitals Service

Estimating board and provider costs in Northern Ireland with particular reference to province-wide hospital services

Tribal Consulting, July 2006

Regression models have been derived using activity and cost data from all the acute hospitals in the province in order to estimate differences between observed costs and expected costs as derived from Healthcare Resource Group (HRG) average or standardised costs. This work has assisted in the development of improved service and budget agreements between commissioners and provider Trusts. In addition to the costing of total activity the modelling has also explored the specific costs of providing province-wide services at selected hospitals and also the extra funding required for unavoidable access-related costs associated with scale: arising mainly from a need to maintain small hospitals in areas of sparse population.