News / Minister unveils tariff for second wave ISTCs

Second wave independent sector treatment centres (ISTCs) will have the same terms and conditions as other providers of NHS care, with activity paid at tariff rates, according to the Department of Health.

Contracts for the first wave of ISTCs, which provide elective care, outpatients, primary care and diagnostic services, begin to expire in 2010. They have been controversial as they were agreed on a block contract basis and there have been reports that capacity has not been used at all ISTCs.

Health minister Mike O’Brien said the second wave of contracts to provide services from treatment centres would be paid under the same pricing arrangements as NHS providers. Services will be delivered under the terms and conditions of the standard NHS national contract for acute hospital services. The first contracts under the second wave were advertised in August.

‘We need providers of NHS services to deliver safe and high-quality care for patients and value for money, but there should also be consistency in pricing and contracts,’ he said.

‘In the past the independent sector has sometimes been guaranteed payments. In the future it is intended that contracts will operate at NHS tariff prices using the standard NHS contract for hospital services.’

Wave one services would not be automatically renewed but reviewed on a case-by-case basis. Where the NHS sees an ongoing need for services, there will be a competitive tendering process, with bidding open to independent and NHS providers.

The announcement was welcomed by the NHS Confederation NHS Partners Network (NHSPN). ‘We are pleased that we finally have some clarity on the shape and timing of the renewal process. The wave one ISTCs have been highly efficient. They can proudly boast exceptional levels of patient satisfaction, cleanliness and standards of medical care,’ said NHSPN director David Worskett.

‘Given the wider economic picture and the need to make sure all government money is spent as wisely as possible, this is an important and timely process. We hope that fair and efficient competitive processes will become the norm for deciding who will provide all NHS primary and secondary care services.’