Karo Latest Updates

PPP Target Adjustment - Explained

DHBNZ have updated the Prevalance Estimates for PHOs - it takes into account any changes in your PHO up to 1 July 09 and also a revised formula. For most PHOs it has meant that the prevalence estimates for Ischaemic CVD and Diabetes have increased.

Because your previous results and targets were based on a lower population this means it was easier for you to reach a higher result and therefore your target for this next quarter 1 July to 31 Dec was that much higher.

Karo is suggesting that you might want to adjust your previous results and therefore you targets downwards to take account of this increase in the prevalence figures. We have sent you a spreadsheet with what Karo would have calculated as the appropriate new target.

Diabetes Annual Review Worked Example:

Last Qtr (April 09) This Qtr (July 09)
Prevalence Estimate 2000 2400
Annual Reviews 1000 1100 (increase of 100)
Percentage 50.00 45.83 (decrease because of prevalence estimate increase)
Original Baseline 50.00 -
New Target - 52.50 (Baseline + 2.5)
Adjusted Baseline 41.67 -
Adjusted Target - 45.42 (Adjusted Baseline + 3.75)