Objectives-To estimate the amount spent on specific hospital care by h
ealth agencies in 1993-4 and compare it with the resources allocated t
o patients registered with fundholding practices for the same type of
care. To investigate whether fundholding practices and health agencies
pay different amounts for inpatient care. Design-Examination of hospi
tal episode statisties, 1991 census data, and family health services a
uthority and health agency records. Setting-Health agencies and fundho
lding practices in the former North West Thames Regional Health Author
ity. Main outcome measures-Amount per capita allocated to inpatient an
d outpatient care for patients registered with fundholding and non-fun
dholding practices. Average specialty cost per finished consultant epi
sode for health agencies and fundholding practices. Results-The ratio
of per capita funding for patients in non-fundholding practices to tho
se in fundholding practices ranged from 59% to 87% for inpatient and d
ay case care and from 36% to 106% for outpatient care. Average special
ty costs per episode were similar for fundholding practices and health
agencies. Conclusions-Fundholding practices seem to have been funded
more generously than non-fundholding practices in North West Thames.