Guidance

2016/17 national tariff proposals: what are we seeking feedback on?

Updated 19 November 2015

Applies to England

1. Over the summer: relative prices, and national variations and local pricing

We have already published proposals on currency design and relative prices and national variations and local pricing. We’d like to thank everyone who shared their views with us.

We are also separately working with a small number of providers and commissioners to undertake an in-depth assessment of the impact of the draft 2016/17 prices, using the more up-to-date activity data that is held locally.

1.1 Relative prices

This document sets out the currencies that we intend to set prices for and how we intend to set national prices including:

• move to the HRG 4+ currency for payment
• new and removed prices
• new and changed best practice tariffs (BPTs) and remodelled BPT prices
• maternity pathway
• high cost drugs and devices
• modelling approach
• managing model inputs
• manual adjustments
• smoothing

Draft price relativities for 2016/17 will be published as part of this package but not final price levels.

1.2 National variations and local pricing

This document sets out our plans for national variations and local pricing including:

• marginal rate emergency tariff
• changes to national variations
• local variations
• local modifications

2. After the spending review: efficiency factor, cost base and service development

We are awaiting the outcome of the forthcoming spending review before finalising proposals on the efficiency factor, cost base and service development, which will enable us to set final price levels.

3. Reimbursement arrangements for specialised care

Monitor is considering changing the mechanism for reimbursing planned specialised care, so that it achieves better value for patients and the NHS.

We’ve published proposals to reform top-up payments for specialised services, which will be included in the 2016/17 national tariff consultation.

Our proposals have been informed by work being led by an independently-chaired working group.

We recently hosted a webinar describing our proposed policies in more detail. We also discussed why specialised services are treated differently in the NHS payment system. Watch the webinar again.

4. Mental health services and the national tariff

We have been working with the Mental Health Taskforce to ensure that their priorities for system improvement will be supported through further development of the payment system.

We will be engaging with commissioners and providers of mental health services over the coming months to understand the challenges they face in adopting more transparent payment approaches and to capture the learning from new payment models being currently adopted.

Share your views

In October we published our proposed changes to the local payment rules covering mental health services in the NHS.

You can read our proposals and share your views using this online form.

Your feedback will help inform the development of the guidance and additional support materials which we intend to launch by the end of the year.

We also welcome feedback on materials we have produced to support local health and care economies in developing and implementing potential new payment approaches for mental health services.