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Significant changes in the payment system in England expected from April 2021
NHS England and Improvement (NHSEI) is currently developing National Tariff Payment System (NTPS) for 2021/22. In November 2020, NHSEI released the 2021/22 Tariff engagement document and initiated a feedback survey.
According to this document, the main change expected from April 2021 is introducing a consistent blended payment approach across almost all specialist healthcare services, including both the acute and non-acute sectors, in line with the NHS Long Term Plan (LTP) objective of moving to population-based funding. This would greatly broaden the scope of blended payments and would replace the individual service-level blended payments introduced in previous tariffs.
The blended payment model for 2021/22 would include a fixed payment based on the costs of delivering a level of activity that conforms to the Integrated Care System (ICS) plan and a variable element for some elective activity.
Alongside the blended payment arrangements, providers and commissioners would need to sign up a System Collaboration and Financial Management Agreement (SCFMA) under the terms of the NHS Standard Contract. The SCFMA would serve to share financial risk across the system.
Implementing the blended payment arrangements would have a significant impact on the operation of the NTPS. While NHSEI will continue to calculate and publish prices, the majority of these would be unit prices for services outside the scope of blended payment rather than national (i.e., mandated) prices.
See the full details here.
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