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13.05.13

Monitor and NHS England to redevelop NHS payment system

The NHS payment system is to be reformed. Monitor and NHS England have published a new discussion paper setting out options for how the system could be redesigned to deliver more and better care within current funding levels.

Hospitals are currently paid through the Payment by Results system, but feedback suggests this is not always based on good quality information, is not sufficiently patient focused and can act as a barrier to integrated care.

The discussion paper sets out possible improvements on setting objectives, and includes a call for evidence on the way hospitals are reimbursed for some emergency admissions.

Adrian Masters, managing director of sector development, Monitor said:  “We believe the way NHS services are paid for can help deliver the best possible care for patients, for example by encouraging more integrated care, as well as helping the NHS deliver better value for the taxpayer.

“This is an opportunity for us to make a real difference to NHS services and we want to work with the sector to achieve this.”

Paul Baumann, chief financial officer, NHS England said: “We are keen to use this opportunity to develop and design a new payment system that does more for patients. We are asking people to contribute by answering the four questions set out in the document.

“Changes to this system will not happen overnight, and it is important we get this right. As part of this engagement we are gathering evidence to support short and longer term improvements to the payment system.”

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