Hospital funding set to change

NHS Improvement has today published new proposals for changes in the way hospitals are funded from next year. The proposals set out a number of changes to the existing payment system including among others:

  • A one year duration of the tariff
  • A blended payment approach for emergency care
  • The introduction of non-mandatory tariffs for certain types of outpatient attendances (e.g. non-face to face follow-up appointments)
  • Updating the Market Forces Factor formula (introducing business rates, using more up to date geographies etc.)
  • A proposal to mandate a blended payment approach for mental health services for working-age adults and older people

Some of the changes proposed by NHS Improvement have been supported by Frontier’s in-depth review of the MFF (and resulting recommendations) which was published alongside the payment system reform proposals.

Frontier regularly advises the NHS, Government, regulators and providers on healthcare issues.

For more information, please contact or call +44 (0) 20 7031 7000