Healthcare resource groups

The national tariff is structured around case-mix measures called healthcare resource groups. HRGs represent groups of clinically similar treatments and diagnoses, which consume similar levels of healthcare resource.

Market forces factor

This is the formula intended to counterbalance regional economic differences by adjustments to reference costs.

Reference costs

The cost of each HRG in a trust, with providers allocating costs according to a national manual.

Case-mix

The mix of types of patients and/or treatment episodes in a particular organisation or specialty.

Tariff

The tariff is a national standard price for each HRG, currently set by the Department of Health.

Coding

Recording of hospital activity, enabling a hospital trust to invoice commissioner based on treatment provided.