Max Rady College of Medicine

Term: Risk Adjustment

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Glossary Definition

Last Updated: 2007-11-08


A process used most frequently in the insurance industry to recognize that some individuals or groups may require more costly healthcare than others. Risk adjustment considers past utilization of services and basic demographic information (i.e., age and sex) as predictors of future cost of care.

Related terms 


  • Finlayson GS, Forget E, Ekuma O, Derksen S, Bond R, Martens P, De Coster C. Allocating Funds for Healthcare in Manitoba Regional Health Authorities: A First Step--Population-Based Funding. Manitoba Centre for Health Policy, 2007. [Report] [Summary] (View)

Term used in 

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Manitoba Centre for Health Policy
Community Health Sciences, Max Rady College of Medicine,
Rady Faculty of Health Sciences,
Room 408-727 McDermot Ave.
University of Manitoba
Winnipeg, MB R3E 3P5 Canada