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30.04.15

Deadline for agreement on draft 2016-17 tariff ‘challenging’ – Monitor

Plans to publish an agreed draft version of the 2016-17 National Tariff by mid-May will be “challenging”, Monitor has admitted. 

At the regulator’s board meeting yesterday (29 April), Tony Lambert, director of pricing, said his team has been working with NHS England to agree the scope of the 2016-17 National Tariff. 

“Prompt agreement on the scope and content is required to publish the Tariff Engagement Document (TED) in June,” he said, adding: “Agreement is scheduled for 19 May 2015, but will be challenging.” 

He added that the pricing team has received comments from expert working groups (EWGs) on the draft prices, and is now considering proposed adjustments. But Lambert said: “It has proved challenging to explain the draft prices to the EWGs. The team has also commenced the TED drafting process.” 

Monitor is still yet to finalise the 2015-16 National Tariff, after providers resoundingly rejected the original proposals back in January. 

Since then, approximately 88% of all NHS providers elected to move to a new voluntary tariff option for 2015-16 (Enhanced Tariff Option), but this has been labelled a temporary solution to a difficult problem that is “threatening the structural integrity” of the health service. 

The minority of providers who have not affirmatively opted in to the Enhanced Tariff Option will continue on current prices (the 2014-15 Default Tariff Rollover, or DTR) “until such time as a new tariff is established”. 

Legally Monitor can either re-consult the sector with new proposals for the 2015-16 Tariff, or refer the matter to the Competition and Markets Authority (CMA). 

Lambert said: “The team is working on both options. It aims to be in a position to refer the 2015-16 National Tariff to the CMA in May 2015, should the board decide to do so. 

“Pending a decision on a reference to the CMA, we continue to develop possible proposals and engage the sector. An option being explored is consultation on proposals for the remaining part of 2015-16 alongside our consultation on the 2016-17 proposals.”

However, he added that publishing the 2016-17 TED later than June will limit the scope for consulting for 2015-16 alongside 2016-17 proposals. 

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