Updating the MMF

MMF2: Updating the staff Market Forces Factor

The staff Market Forces Factor (sMFF) is the mechanism in England by which both funding allocated to commissioners of healthcare and the tariff that providers of healthcare can charge are adjusted to reflect the unavoidable costs of commissioning/providing health care across different geographical locations. The current sMFF is based on estimates of spatial wage differentials using 2007–2009 Annual Survey of Hours and Earnings (ASHE) data. The focus of this project will be on providing a new updated Staff MFF index based on the latest data available from ASHE. This ensures funding and pricing reflects the current labour market conditions faced by commissioners and providers of healthcare.

Outcome and Translation

The focus of this project was to provide a new updated Staff MFF index based on the latest data available from ASHE. This ensures funding and pricing reflects the current labour market conditions faced by commissioners and providers of healthcare.

HERU researchers involved in this research project: Diane Skåtun, Bob Elliott and Zoé-Ourega Ejebu

External collaborators: Alex McConnachie (University of Glasgow) and Nigel Rice (University of York)

Publications

Skåtun, D., Elliott, R.F., Ejebu, O., McConnachie, A., Rice, N. and Wetherall, K. (2017) The staff market forces factor component of the resource allocation weighted capitation formula: new estimates 2013-2015, Aberdeen: HERU.

Presentations

Skåtun, D. (2018) 'NHS funding allocations: generating the Staff Market Forces Factor', UK Data Service Secure Lab User Workshop, London, England, 2 October 2018.