The aim of Payment by Results (PbR) is to provide a transparent, rules-based system for paying trusts. It will reward efficiency, support patient choice and diversity and encourage activity for sustainable waiting time reductions. Payment will be linked to activity and adjusted for casemix. Importantly, this system will ensure a fair and consistent basis for hospital funding rather than being reliant principally on historic budgets and the negotiating skills of individual managers.
Confirmation of PbR arrangements and tariff for 2007-08.
Release of the cross-border emergency treatment agreement.
PbR development: your opportunity for feedback on the differential tariff and unbundling
For the majority of NHS organisations, 2006/07 is the second year of transition to Payment by Results and things are already improving. During 2005/06, we have been engaging with NHS managers, clinicians and other key stakeholders to learn the early lessons and make recommendations for change. This engagement will continue from 2006/07 so that advice from the field informs the development of Payment by Results and supports a cycle of continuous improvement.
To ensure the success of Payment by Results we are providing an improved range of tools and support for people working with the new system including:
Confirmation of PbR arrangements and tariff for 2007/08 following the PbR road-testing exercise which concluded on 24 November 2006.
National tariff, technical guidance and supporting announcements and documentation.
The introduction of Payment by Results resulted in a change to the way activity taking place out of area is funded. Guidance for non-contract activity (NCA) for 2006/07 is released to support payment for this activity.
This year, we are introducing a Code of Conduct for Payment by Results, which was developed through public consultation during 2005.
The Department of Health has been working with the Audit Commission to develop a framework of guidance and monitoring which will help both purchasers and providers have confidence in the data underlying the payments made under PbR rules. During the last few months the Audit Commission has been piloting the new elements of the framework, as announced in a joint DH/AC letter of 30 March, attached below. The results from the pilot sites are now available in a report from the Audit Commission which is also attached below. The Department of Health has accepted the recommendation made by the Commission that the programme of external audit of clinical coding, supported by a national benchmarking programme, should be rolled out nationally from 1 April 2007 and further details will be issued in due course. The Department will continue to work with the Commission to develop the wider aspects of the framework
Details of revised governance arrangements following the independent review into the 2006/07 tariff calculation process.
The introduction of PbR and its implementation throughout the NHS in England is the subject of a programme of research and evaluation. Details of the various projects underway or already completed can be accessed here.
National tariff, technical guidance and supporting announcements and documentation.
The introduction of a payment by results funding system for the provision of mental health services depends on the results of an ongoing classification project.
This Code of Conduct for Payment by Results was developed through public consultation during 2005. Work is underway to implement an assurance framework that will help improve the quality of clinical and financial data which forms the basis of transactions under Payment by Results and is therefore vital for the integrity of the system.
Contact details for the Department, Connecting for Health and the Information Centre for health and social care.