News / Association calls for early tariff engagement

The 2015/16 tariff was not introduced in its original form after more than half of providers (by tariff income) objected to it. Providers were instead asked to choose between an enhanced tariff offer or continue with the 2014/15 tariff, while forgoing CQUIN quality payments.

But the problems made it difficult for NHS organisations to plan for the year ahead and introduced significant delays into the contracting round.

HFMA technical and policy director Paul Briddock (pictured) said it was important that similar problems were avoided with the 2016/17 tariff.

‘We can’t afford a repeat of last year,’ he said. ‘There is an onus on Monitor and NHS England not to present late changes – like the revised approach on a specialised services marginal rate – without proper consultation with the service and proper consideration of the potential impact.

‘But there is also a duty on the NHS – and the finance function has a major role in this – to provide feedback on proposed changes as early as possible.’

The tariff engagement document provides the most important opportunity for organisations to have this discussion about next year’s tariff. Any objections to the formal consultation at the end of the year are supposed to be confined to the method for determining national prices.

Monitor and NHS England are looking to deliver significant changes to the payment system over the long term – with new models Association calls for early tariff engagement based on capitation budgets and capacity sitting alongside activity-based tariffs. But there are likely to be other important changes for 2015/16.

‘There are potentially big changes, such as the switch to HRG4+ and progress towards different payment mechanisms,’ Mr Briddock said.

‘It is practitioners in both commissioning and provider organisations that have the best understanding of how the tariff system works out in the field. We need to ensure this expertise is fed into the tariff development process as soon as possible.’

Mr Briddock added: ‘The HFMA will co-ordinate a national response, but it is also important that individual organisations – informed by their finance professionals – assess the possible impact on services locally, flagging up concerns and practical implications.’