Ian Duncan: Applications of risk adjustment in health care

The NHS in England has recently introduced a risk-adjustment formula that will be used to allocate budgets to GP practices and clinical commissioning groups. The Person-Based Resource Allocation (PBRA) formula uses complex data sets to estimate budgets at GP practice level, based on the needs of people registered on GP lists. 

In June 2011 the Nuffield Trust held a conference to consider this new funding formula and to learn from a number of world experts on risk adjustment.  In this video, Professor Ian Duncan, Professor of Actuarial Mathematics at the University of California, Santa Barbara, and Founder of Solucia Consulting, speaks with Nuffield Trust Senior Fellow Dr Geraint Lewis about the applications of risk adjustment in health care, and explains some of the pitfalls and controversies associated with the techniques.