Monitor, NHS England 1 December 2014
- Improvements to the payment system for healthcare will be critical to developing and delivering the new care models described in the Five Year Forward View, alongside changes in other enablers such as contracting, technology and the workforce.
- The use of so-called ‘capitation’ payments to NHS providers- bringing hospitals, community and mental health into line with the way GPs are funded – would particularly benefit the frail elderly and those with multiple care needs, such as those with long-term conditions. (See Supporting innovation in the NHS with local payment arrangements)
- Monitor and NHS England are encouraging commissioners and providers to adopt this new payment model when negotiating the local price-setting arrangements. The organisations propose such arrangements should increasingly become the norm under reforms to the national tariff, which would see it become a framework of rules, rather than just a list of prices.
