‘Payment by results’ style system returns for electives

The health service in England is returning to a payment-by-results-style system for elective activity, new guidance confirms.

Providers struggled to hit elective targets in 2022-23, in large part due to ongoing covid, emergency care and staffing pressures, but some have argued that incentives to carry out more activity are too weak.

Proposals for the NHS payment system for 2023-24 issued state: “The large backlog in elective care is a significant issue for the NHS and the patients who rely on it. We want the NHSPS to include an elective funding mechanism which means that providers are paid based on the level of activity they deliver.”

The plans add: “The approach we are proposing gives providers maximum financial incentive to deliver the elective activity targets they are being set.”

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Source: HSJ, 23 December 2022