NHS Improvement consultation on blended pricing model

NHS improvement is calling for feedback on the operation of its new blended payment model.

As announced in the 2019/20 National Tariff, and touched on in the NHS Long Term Plan, the NHS is adopting a ‘blended payment’ system in some areas. This system determines how hospitals are paid for their provision of some services including A&E and non-elective procedures (excluding maternity and transfers) and mental health.

Blended payments involve a fixed payment covering expected service demand, with additional service use being reimbursed at only 20% of the usual Tariff (and an equivalent deduction if provision is lower than expected).

NHS Improvement are now calling for input on how this system is working. The consultation will be open for only a short period, and closes 31st May.

NHS Improvement suggest that this system better reflects the impact of many costs being fixed and independent of demand. The system contains ‘break glass’ clauses – thresholds significantly higher or lower than expected demand – which if exceeded, trigger a renegotiation of the blended payment system.

Provide your views here.

See other ongoing consultations on the MAP Consultation Tracker

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Published on 21. May 2019 in News, News UK