Model of Behaviour within Fuzzy Budget Constraints

Sussex, J. and Hernandez-Villafuerte, K.

Research Paper
December 2015

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This paper presents a model to capture the behaviour of health sector decision makers when making resource allocation decisions on the level and mix of healthcare production, while taking into consideration the maximum expenditure (budget) allowed by the government or the health system regulator.

The paper seeks to address two perennial policy and practical discussions in the UK National Health Service (NHS) (and elsewhere): how to cope with financial austerity; and the opportunity costs of reimbursing new health technologies.