DoH announces payment by results consultation

The Department of Health (DoH) has announced the initiation of a consultation regarding the future of the payment by results system by which hospitals are paid.

Included in the consultation are thoughts regarding the improvement of the data underlying the scheme, methods of gaining enhanced clinical involvement, the notion of basing some prices on efficient practices and ideas regarding the method of rewarding specialised service provision.

The payment by results system has been responsible for the distribution of over 22 billion pounds in the past year, which accounts for over 60 per cent of the income received by hospitals for acute care.

Andy Burnham, minister of health, said: “Payment by results is still a relatively new way of funding the NHS, but already it’s making a real difference to the way that care is provided and organised.”

He added that previous methods of payment by historical practice rather than current performance did not properly incentivise efficiency in the health service, while payment by results provides improved information on NHS spending to better inform policy-makers on service provision.

Payment by results aims to provide a clear rules-based system for payments to care trusts that support patient choice, encourage sustainable reductions in waiting times and reward efficiency.