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The budgetary targets implied by the RAWP recommendations were phased in gradually over a period of 15 years.
They took formula funding to a new level of intellectual coherence and sophistication, and have been highly influential internationally.
It was used by RAWP as an index of an area’s relative morbidity and therefore as a proxy for medical need over and above demographic considerations.
RAWP also broke down health care into a small number of broad categories of conditions and the index of relative need for care for each category was determined by applying the condition-specific SMR to the population of an area.
This trend has been given added impetus by the increased decentralization of health services worldwide.
If decentralization is to be effective, national governments need to be seen to be treating different localities even-handedly.
The Department of Health sets the cash-limited budget available for allocation to PCTs.
They remained in force until 1990, by which time most regions were spending very close to their expenditure targets.