Methodology for calculating cost per WAU

This article provides a technical explanation of how to calculate cost per WAU from 2018/19 onwards, including the exact value of the WAU constant for each year.

Methodology for 2018/19 onwards

  • Total costs: MFF-adjusted total cost for each patient episode, appointment or attendance from PLICS

Divided by

  • Number of WAUs: national average cost-weighting (MFF-adjusted) for each patient episode, appointment or attendance, from PLICS; the weighting is specific to their point of delivery (POD), specialty, and HRG designations. For inpatients only Episode Type=3 patients were are included. This is then divided by the WAU constant.
Year WAU constant
2018/19 3513.60
2017/18 3516.01
2016/17 3514.55
2015/16 3512.58
2014/15 3517.45

Methodology before 2018/19

  • Total costs: Sum of the MFF-adjusted actual cost field in Reference Costs

Divided by

  • Number of WAUs: Sum of the MFF-adjusted expected cost field in Reference Costs  divided by the WAU constant.

Exclusions (in line with the process for calculating the Reference Cost Index)

Activity and expenditure is excluded if coded to:

  • Cystic Fibrosis (Department code = CF),
  • data that is invalid for grouping (HRG = UZ01Z),
  • contracted out services (supplier type = Out),
  • data on Improving Access to Psychological Therapies (service code IN (IAPTMHCC, IAPTMHCCIA))
  • data on secure services clusters (service code IN (LSMHCC, LSMHCCIA, MSMHCC, MSMHCCIA, HSMHCC, HSMHCCIA))

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