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Final Report on RREF 2001 - Department of Health

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Part C: Outcomes<br />

In the initial modelling, all data sets were compiled at LGA level before being aggregated to the<br />

regi<strong>on</strong>al level, and LGA level data were retained in all the revised modelling. The size <strong>of</strong> these<br />

data sets and the complexity <strong>of</strong> modelling is again emphasised:<br />

• there are 78 LGAs in Victoria;<br />

• there are 20 age groups in each LGA;<br />

• each with a different age-specific rate <strong>of</strong> handicap;<br />

• each LGA is scored for five variables;<br />

• projecti<strong>on</strong>s are then made for each LGA to take account <strong>of</strong> total populati<strong>on</strong> growth and<br />

changes in age structure, and c<strong>on</strong>sequent changes in handicap over the period 2002-<br />

2006;<br />

• the current <strong>RREF</strong> and three further base populati<strong>on</strong> opti<strong>on</strong>s are modelled, with<br />

modificati<strong>on</strong>s made to two <strong>of</strong> the base populati<strong>on</strong> opti<strong>on</strong>s in revised modelling;<br />

• initial opti<strong>on</strong>s were modelled with six variables and with <strong>on</strong>ly four variables, and<br />

• the effects <strong>of</strong> giving double weighting to selected variables are also modelled for the<br />

initial and revised opti<strong>on</strong>s.<br />

All modelling has been carried out independently by the two members <strong>of</strong> the Review Team with<br />

statistical and actuarial skills and then cross-checked. Small differences will however remain<br />

due to rounding and other mathematical aspects <strong>of</strong> data processing<br />

The revised results presented in the next steps should not be taken as final. Even when a<br />

decisi<strong>on</strong> is made <strong>on</strong> the <strong>RREF</strong> that is to be used in future, new data may become available and<br />

further refinements made before any revised <strong>RREF</strong> is implemented.<br />

<str<strong>on</strong>g>Final</str<strong>on</strong>g> <str<strong>on</strong>g>Report</str<strong>on</strong>g> July <strong>2001</strong> 65

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