Magazine article Public Finance

Payment by Results Tariff Set to Squeeze the NHS

Magazine article Public Finance

Payment by Results Tariff Set to Squeeze the NHS

Article excerpt

Experts have predicted another tough financial year for the NUS in England after the Department of Health published the payment by results tariff increases for 2007/08.

Details have been released early to allow the NHS to 'road test' next year's tariff before the final version is published next month.

The aim is to avoid the embarrassment of earlier this year when the 2006/07 tariff was published and then withdrawn after errors were found.

The 2007/08 tariff will rise by 2.5% but NHS organisations will have to find another 2.5% through efficiency savings.

In a letter to the service, NHS chief executive David Nicholson said the increase balanced financial risk between providers and commissioners.

Pay might be one of the biggest pressures - the DoH said the tariff increase allowed for a 2.5% rise in pay. But it admitted pay reforms such as Agenda for Change and the consultant contract would cost an additional £452m. …

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