Tories back NHS Alliance on Payment by Results reform

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

Andrew Lansley (Photograph: J H Lancy)
Andrew Lansley (Photograph: J H Lancy)

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

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

A Conservative spokesman said: ‘The current tariff system has failed to lead to a system of actual payment by results. 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 health secretary Andrew Lansley will outline the plan further in a speech in September.

The DoH is nervous about a maximum tariff because it would reintroduce price negotiation, saying it would cause ‘a lack of transparency and very serious problems for those services where the cost is currently above average'.

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