Monday, November 20, 2006

Payment by results tariff set to squeeze the NHS.

Experts predicted another tough financial year for the NHS in England after the Department of Health published the payment by results tariff increases for 2007/ 08. 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. The Department is keen on 'unbundling' tariffs so some elements of patients' care, such as diagnosis or rehabilitation, can be provided outside hospitals. It has published some indicative unbundled tariffs and backed local agreements on unbundling.