Abstract
Under payment by results (PbR) hospitals receive the bulk of their income from the healthcare resource group (HRG) tariff. The tariff in each HRG is the weighted average cost for all English hospitals. A key assumption within the national tariff is that all procedures or admissions with the same clinical codes must cost the same, irrespective of the specialty in which the activity occurs. It has always been stated that the groups of codes that make up a HRG are iso-resources, i.e. cost roughly the same (Jones, 2001; The NHS Information Centre (NHS IC), 2007).
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