New payment approaches for mental health services

In a move towards delivery of the Five Year Forward View for mental health, NHS England and NHS Improvement are supporting providers and commissioners of adult and older people mental health services to implement more transparent payment approaches.

On 8 November 2016 we published detailed guidance documents which set out the different approaches that providers and commissioners can adopt.

The two payment options that providers and commissioners can choose between are a capitated payment approach, or an episode of treatment (year-of-care) payment approach.

We have also published technical guidance on how providers and commissioners can link locally agreed quality and outcome measures to payment.

By way of background, as part of our consultation on the 2017/18 and 2018/19 national tariff we’re requiring mental health providers and commissioners to adopt transparent and robust payment approaches linked to outcomes.

NHS England Publication Gateway reference 05586