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  • Version (3.5) was used, which allowed assignment of the 2005 Payment by Results (PbR) tariff to episodes from the entire period 2001 to 2010. [31] We then inflated the cost to 2012/13 prices using the Hospital & Community Health Services Index. [32] Finally we multiplied each cost by 1.08 which is the average Market Forces Factor for Hospitals in the English NHS. [33] Market Forces Factors are applied to payments generated from HRG codes to adjust payments for unavoidable differences in costs relating to the geographic location of each hospital. [34] In addition to estimating cost on the basis of HRG code we adjusted costs for extended length of stay.
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