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To ask the Secretary of State for Health what formula her Department uses to determine the payment made to each primary care trust under payment by results.
Revenue allocations are made to primary care trusts (PCTs) on the basis of the relative needs of their populations. A weighted capitation formula calculates target shares of available resources for each PCT based on the age distribution, additional need and unavoidable geographical variations in the cost of providing services. The 2006-07 allocations have been adjusted to reflect non-recurrently the transitional arrangements for PCTs to support the implementation of payment by results.