11.12.15
Providers to get three-year allocations, NHS England confirms
NHS England has “every intention” to deliver on multi-year settlements and intends to provide clarification through three-year firm allocations and two-year softer indications, its chief financial officer, Paul Baumann, has said.
Speaking at the Healthcare Financial Management Association (HFMA) annual conference yesterday, attended by NHE, Baumann confirmed that the scope of multi-year settlements will be set out during NHS England’s board meeting on 17 December.
As well as confirming the intended model of allocations, Baumann said the body wants to help the most underfunded CCGs with extra resources in an assessment allegedly endorsed by the National Audit Office. In 2014, the auditor blasted the unfair distribution of resources to healthcare services, with the Public Accounts Committee adding that it was “outrageous” that 104 CCGs received more than they needed while 19 others were underpaid.
Jointly with NHS Improvement’s CEO, Jim Mackey, Baumann confirmed that the body would also defer the introduction of cost-based HRG4+ until 2017-18. The new tariff, subject to consultation and agreement from Monitor’s board, will include an efficiency factor of 2%.
Baumann also made very clear that providers should be directing all their energy and confidence into the Right Care programme, which he described as key to deliver utmost value for money, £2bn of savings and transformed care.
“There is no Plan B,” he warned the finance chiefs in the audience. “Please don’t get behind on the Right Care revolution.”
As part of the healthcare service’s new era, where providers will have to look inwards for savings and outwards for inspiration on how to find them, Baumann said unbridled creativity is highly encouraged.
But he said any innovation will be closely monitored in real time in order to assess “what’s working and what needs to be killed”, rather than waiting until the programme comes to an end.
Other imminent changes providers can expects from NHS England’s new mandate, to be published imminently, include more highly-systematic processes without as much waste and variation, better use of technology and more self-care, treatments and prevention schemes.