Tories to reform pay by results

Payment by Results tariffs under the Conservatives would be lower maximums, allowing GPs and health commissioners to negotiate prices downwards.

The Tories back NHS Alliance calls for reform, which could mean that hospitals will receive less money for treatments and operations.

At the moment Payment by Results tariffs are based on the average cost of procedures. The Tories would like tariffs reduced on the basis of efficiency, with GPs and commissioners encouraged to negotiate further.

A Conservative spokesman said: 'Payments should be based on the outcomes achieved, not simply the procedures undertaken.

'Our objective will be to ensure that the NHS delivers better value for money by reforming the tariff so that hospitals get paid for the results they actually achieve linked to the delivery of excellent services.

'Our reform programme will enable us to deliver much improved healthcare outcomes and better value for money from the services provided for patients.'

Shadow Conservative health secretary Andrew Lansley will outline the plan further next month.

What do others say?

The DoH
A DoH spokesman feared reintroducing price negotiation would cause 'a lack of transparency and very serious problems for those services where the cost is currently above average'.

NHS Alliance
NHS Alliance chairman Dr Michael Dixon said: 'It is time to redress the balance and give commissioners the power to choose and the ability to save money.'

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