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Board orders overhaul of CCG funding formula

18 December 2012

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The NHS Commissioning Board (NHS CB) has ordered an “urgent” overhaul of the resource allocation for clinical commissioning groups (CCGs).

While the Board agreed the CCG allocation formula proposed by the Advisory Committee on Resource Allocation (ACRA) “accurately predicts the future spending requirements of CCGs based on the pattern of need as it is being met from that particular budget”, it is “concerned” that use of the formula on its own with higher growth for areas that already have the best health outcomes.

According to the NHS CB’s planning guidance Everyone counts: planning for patients 2013-14 the formula is “inconsistent” with the Board’s plan to reduce health inequalities.

“[The Board] will therefore conduct an urgent, fundamental review of the approach to allocations, drawing on the expert advice of ACRA and involving all partners whose functions impact on outcomes and inequalities,” said the guidance.

It is expected the review will be completed in time to inform 2014/15 allocations.