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21.07.14

Plans floated for move away from national NHS prices

Monitor and NHS England have floated plans for local commissioners to move away from national NHS prices.

In their 2015/16 National Tariff Payment System: Tariff engagement documents overview there has been a call for a real push towards innovation in local pricing.

In particular for 2015/16, they are proposing new payment rules for mental health services. The document says the organisations “plan to confirm existing rules for determining local prices for mental health services, including the requirement to report on the basis of care clusters”. They will also develop supplementary guidance to help providers and commissioners move to payment models that better support the above expectations.

There are plans to support innovation by providing examples of payment designs; setting prices that reflect the efficient cost of provision; and promoting value in acute services without national prices.

With regards to this, NHE England and Monitor are inviting the sector to provide feedback on two policy options they are considering that are aimed at” promoting value for patients from payment for acute services without national prices, and at accelerating the pace of convergence towards only remunerating efficient costs for specialised services”.

The options represent two alternative policy responses: either signposting existing

commissioner-contracting options in guidance or using the 2015/16 national tariff to introduce a new local price-setting rule.

Providers and commissioners are encouraged to respond to these proposals in order to influence the final tariff which will be published later in the year.

Ric Marshall, director of pricing at Monitor, said: “The changes we are proposing will incentivise the NHS to make necessary improvements in quality and efficiency so that it continues to meet patient needs and expectations within available resources.

“Commissioners and providers will be able to make better decisions about what services to commission and provide for their patients. We are now inviting the sector to give us their feedback on these ideas before we go to statutory consultation on the contents of the tariff.”

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