What is the underlying principle of the allocation Formula?
The main objective of the Arbuthnott Formula is to provide for equity of access to healthcare. Resources are distributed among NHS Boards on the basis of relative need for health care services within that population group, where use of services has been used as a proxy for need. Scotland uses an indirect approach to measure healthcare needs. The indirect approach relies on health service utilisation data to measure those needs based on (i) the demographic profile of the populations, taking into account the national average costs of providing services based on age and sex, and (ii) relative levels of deprviation, and its estimated relationship on the greater use of services within each care programme. In addition to these two factors, the relative need for resources in each NHS Boards is also influenced by the additional costs of providing services in remote and rural areas.
