Reforming the NHS payment system

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Our 2015 Challenge brought together 21 influential health and care organisations and emphasised a whole-system view on the need for faster development of new payment mechanisms to support more integrated and outcome-focused care. 

We are determined that payment reform happens at pace in this parliament and have emphasised the main areas we would be keen to see improved.

NHS Improvement and NHS England’s formal 28-day consultation on the 2017/19 national tariff payment system is now live, seeking feedback on tariff proposals including the proposed method for determining national prices. 

The consultation will run until the end of the day on 6 December 2016. 

What we're doing

NHS Confederation has been working with national bodies to improve the engagement process for setting the national tariff each year. The need for this is emphasised by two concurrent years of dissatisfaction with the final prices agreed. We continue to improve the process and to make the case for a whole-system response to risk-sharing in the NHS. 

  • Each year, we undertake engagement with our members at all stages of the tariff process, including as early thinking is being developed (usually in the spring), when initial proposals are put forward (usually in the summer) and when formal options are consulted on (usually in the autumn/winter). This includes discussions with our members and national bodies to reflect on how to improve the tariff each year.
  • In 2015, we worked with NHS Providers and NHS Clinical Commissioners to improve the tariff-setting process by supporting an enhanced impact assessment pilot, which was run by Monitor and NHS England. This process will strengthen national bodies’ understanding of what impact draft prices will have for specific organisations. The learning from this can help them adjust prices to reflect effects not apparent from the data they have.
  • We continue to push for bolder reforms to the national tariff and will be working to consider how the NHS might move to a multi-year tariff cycle.
  • Working with Monitor’s costing team to help shape its costing strategy proposals for improving the data on which prices are set.

You may have missed

Our response to the Department of Health’s consultation on amending the objection threshold for agreeing the national tariff.

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