• NHS England and NHS Improvement have published the formal consultation document on proposals for the 2019/20 National Tariff Payment System.
• It proposes to set the tariff for one year, rather than two.
• It suggests to use nationally set rules and prices to make a ‘blended payment’ the default payment approach for emergency care, supported by a £1bn transfer from the Provider Sustainability Fund (PSF) into emergency care prices.
• It recommends updating the calculation method and underlying data for the market forces factor (MFF), introducing the new values over a five-year period.
• It proposes to remove around £204m from the amount covered by the national tariff to reflect changes to arrangements for procurement of products for the NHS.
• It suggests to make all maternity prices non-mandatory, to address a specific issue relating to pricing of public health services.
• It recommends that that the consultation closes at midnight at the end of 21 February 2019.

The deputy chief executive of NHS Providers, Saffron Cordery said:

“Trusts will broadly welcome the financial settlement for 2019/20 set out in the national tariff. This settlement represents the first year of the long term plan and is an important step in supporting the sector to return to financial balance.

“There are measures which will help trusts work towards a sustainable recovery. Providers will welcome the additional revenue in the tariff for the services they provide. In particular they will appreciate the shift of funds from the provider sustainability fund to the tariff, and we are pleased to see a more realistic approach on efficiency.

“It is inevitable that there would be winners and losers from changes to the market forces factor, so it is good to see that the phased approach proposed has been extended to five years to help mitigate this impact.

It is inevitable that there would be winners and losers from changes to the market forces factor, so it is good to see that the phased approach proposed has been extended to five years to help mitigate this impact.

Saffron Cordery    Deputy Chief Executive

“However it is disappointing to see that the proposals for a blended payment model for emergency care have not been modified, and the views of providers have not been taken into account. This approach means trusts will continue to be unfairly penalised for unplanned growth in emergency admissions, and it does not incentivise or support the move towards joined up working. The bulk of the risk will continue to be heaped upon providers and this runs counter to the ambitions for the sector set out in the planning guidance. The blended model for mental health providers, however, has merit and should be considered as a starting point for other sectors.

It is right that mental health, community and ambulance providers are shielded from much of this cost considering they lack of bulk-buying power for these services. This is a move that NHS Providers called for.

Saffron Cordery    Deputy Chief Executive

“We still feel it is unjustified to skim funding from trusts for a national procurement model when there is no evidence this will lead to savings for trusts. However it is right that mental health, community and ambulance providers are shielded from much of this cost considering they lack of bulk-buying power for these services. This is a move that NHS Providers called for.

“Finally, it is wrong to assume that changes to the tariff will lead to greater efficiencies in outpatient services. Reducing funding will increase cost pressures for trusts but will not open up opportunities to redevelop services.”