NHS trusted to get funding based on how it clears Covid backlog
Sajid Javid, the health secretary, has promised to introduce “a payment system that incentivizes strong performance and provides good value for the public”.
A government source said: “The reintroduction of pay-by-performance in the NHS will ensure that the taxpayer-funded increase to deal with elective course backlogs will result in cost savings while incentivizing strong performance.
“There will be a laser-like focus on value for money for the taxpayer as we increase funding for the NHS and tackle post-Covid waiting lists.”
The new scheme will be a “blended” model under which hospitals receive a fixed tranche of funding and then a “top-up” based on their performance against targets linked to the provision of services such as hip surgeries.
All trusts would be set a target based on a percentage of their pre-Covid performance in the 2019-20 financial year, which would be used as a benchmark.
Trusts exceeding their targets for performing trades and processing under the scheme will receive “top-up” funding for services performed beyond their target.
The additional funding will be provided at 75% of the usual rate for each procedure or treatment, which is intended to cover any additional staff and other costs associated with additional activity, while recognizing that fixed costs such as the provision of operating theaters would not increase.
In cases where a hospital does not meet its target, it will lose up to 75% of what it should have received for operations or treatments that do not take place. NHS England has been pushing for trusts to lose just 50% of planned funding.