The Health and Social Care Act 2012 moved responsibility for pricing from the Department of Health, to become a shared responsibility for NHS England and Monitor.
Under the terms of the Act, NHS England has a duty to specify those healthcare services for which it thinks a national price should be used, and Monitor has the duty to set that price. There is also provision for setting rules governing not only how nationally set pricing will work, but also how local price-setting must operate.
This legal framework means that the documents describing the payment system looks very different to those previously produced by the Department of Health. There are new timetables and new processes for producing the National Tariff, including a statutory consultation and the right to object to the method used to set prices. In all these arrangements, NHS England and Monitor are required to work closely together, developing the new funding system as partners.
While NHS medical services are free at the point of use for the patient, the system is taxpayer funded. The NHS Payment System must deliver more and better health care for the foreseeable future within the level of funding available.
This page brings together all relevant publications relating to our work on the NHS payment system, and signposts to other publications which will be of interest, for example relating to rewards and incentives.
- Confirmation of the National Tariff Payment System for 2016/17: NHS England and Monitor have published the 2016/17 National Tariff Payment System, which comes into effect on 1 April 2016.
- Local payment approaches for mental health services: NHS England and Monitor have published two short guides to support commissioners and providers to develop local payment approaches for mental health services.
- Engagement on 2016/17 National Tariff proposals: NHS England and Monitor have published a letter setting out plans to engage with commissioners and providers over the coming months on proposals for the 2016/17 National Tariff.
- Different payment approaches to support new models of care: These examples, which include capitation and gain/loss sharing, have been informed by the experiences of local health and care economies, and show how different payment approaches could help support the delivery of these new care models.
- Reforming the payment system for NHS services: supporting the NHS Five Year Forward View: This document signals the proposed direction of payment system reform, setting out the new payment approaches and improvements to the underlying data and processes that are envisaged, and when and how these can be introduced.
- National tariff payment system 2015/16: a consultation notice: This consultation notice sets out NHS England and Monitor’s proposed prices and payment rules for 2015/16 that are designed to support commissioners and providers improve the quality and efficiency of care for patients.
- Reimbursement of urgent and emergency care: discussion document on options for reform: This discussion document sets out NHS England and Monitor’s current thinking on options for reforming the urgent and emergency care payment approach.
- The maternity pathway payment system – supplementary guidance: This document clarifies whether particular services are included or excluded from the pathway payment and provides guidance on implementing the pathway system through establishing appropriate data flows and contracting and invoicing arrangements.
- Development of the mental health payment system: This document summarises the themes emerging from a Stocktake event that NHS England held for stakeholders in March 2014 to discuss the development of the mental health payment system.
- 2015/16 National Tariff Engagement Document: NHS England and Monitor have published proposals for the 2015/16 national tariff payment system and invite feedback to help inform the development of final proposals to be consulted on in the autumn.
- 2015/16 national tariff – methodology discussion paper: This discussion paper sets out NHS England and Monitor’s thinking on the development of the methodology for setting national prices for 2015/16.
- How NHS England and Monitor are working to make the payment system do more for patients from 2015/16, 28 February 2014: This document sets out our plans for the NHS payment system this coming year and how we’re engaging the sector earlier and more actively along the way.
- Templates for locally determined prices, 10 February 2014: There are a range of circumstances where prices for healthcare services are determined locally rather than nationally. Following on from the publication of the 2014/15 National Tariff Payment System on 17 December 2013, Monitor has now published templates and additional information to assist commissioners and providers get to grips with rules on Local Variations, Local Modifications and local price-setting.
- Confirmation of the 2014/15 National Tariff, 17 December 2013: NHS England and Monitor have confirmed the arrangements for the 2014/15 National Tariff, following consultation with commissioners and providers in the autumn.
- Review of incentives, rewards and sanctions, 2 July 2013: This document sets out our early thinking on the design of incentives, rewards and sanctions for 2014/15 and provides an opportunity to influence the direction of the proposed changes.
- How can the NHS payment system do more for patients? – An introduction, 28 June 2013: We have published an update which describes for patients how the NHS payment system works now, why it is being redesigned, and how and when the new system should be better for patients.
- Engagement on proposals for the 2014/15 National Tariff, 13 June 2013: NHS England and Monitor have invited feedback on a package of materials setting out our proposals for the 2014/15 National Tariff.
- NHS England and Monitor call for views on how the NHS payment system can do more for patients, 13 May 2013: NHS England and Monitor have published a discussion paper which asks for views on the future of the payment system, and a call for evidence on the way hospitals are reimbursed for some emergency admissions. The paper presents early thinking on setting objectives and designing the NHS payment system.