Similar to other countries, Ireland is currently implementing an activity based funding (ABF) model for public patient care in hospitals. Though the ABF approach has a number of benefits, the issue of equity has rarely been addressed at a research or policy level. This timely and nationally relevant issue warrants investigation. As health is not evenly distributed across socio-economic groups in Ireland, it is possible that hospital group (HGs) areas with more disadvantaged population profiles may not receive fair or adequate funding. ABF payments are currently calculated using factors including average length of stay (LOS) with adjustment for case complexity and for high LOS. This project aims to examine if the socio-economic profile of hospital group (HG) areas in Ireland vary. Second, we will determine if socio-economic factors are associated with LOS and other health care measures that are proxies for cost using complete Hospital In-patient Enquiry (HIPE) data. This will highlight if the distribution of funding to HGs using ABF is fair. Third, should evidence suggest that unfair funding allocation is possible using ABF due to an association between socio-economic deprivation and health care measures, we will propose a solution to enhance the current methods used for allocation of funding. This project will provide evidence on whether deprivation is associated with hospital care measures in Ireland and will propose a formula to enhance the current ABF mechanism if necessary to ensure it is fair. Ensuring equitable resource allocation aligns with key values within our health system and engaging knowledge users throughout the project will ensure that our findings are relevant and practical. It is important that HGs are funded fairly to ensure that they provide the best care possible to their patient group. Our project is novel in making use of microdata which is under-utilised by the health service.
