Resource Allocation for Local Public Health. A Technical Report for the Department of Health

The aim of this research is to support the Advisory Committee on Resource Allocation (ACRA) and its Technical Advisory Group (TAG) in developing an evidence-based, equitable formula for distributing public health funds to Local Authorities. The research will provide a formula based on the data currently available for short-term allocations.The objectives of the research are to: recommend options to ACRA for an evidence-based public health formula, building on the work already undertaken by ACRA and TAG and adding further evidence to improve the formula. estimate a formula based on the cost of meeting the relative need for public health services, supporting reductions in health inequalities and accounting for health inequalities within as well as between local authorities.The research uses large national datasets to estimate relative population needs for public health services and interventions in each Local Authority. The research covers public health grants to Local Authorities only, and does not address the other public health funding streams. The research covers relative needs only and does not include re-estimation of the adjustment for input prices (the Market Forces Factor), which is outside the scope of this work. The research also does not cover the Health Premium Incentive Scheme (HPIS), but should be seen as complementary to it.We estimate utilisation models for public health services that are delivered to individuals and for which individual or small-area data on utilisation are available. These include services for sexual health, and for drugs and alcohol misuse. For the allocation of funds for population-level services, we use multivariate regression techniques to estimate expected levels of population health based on population characteristics that are outwith Local Authority control.The research has been reported to the independent Advisory Committee on Resource Allocation, who advise the Secretary of State on the funding formula. The research is intended to inform the allocations from 2016/17 onwards.