Public Expenditure on Health and Personal Social Services 2009 - Health Committee Contents


3.  SYSTEM REFORM

3.1.2  Could the Department provide a list of all Independent Sector Treatment Centres (ISTCs) currently in operation, or with contracts already signed, including (a) name and location, (b) company running the ISTC, (c) services contracted for, by type and volume (by Healthcare Resource Group if possible), (d) value of contract per year, the period of the contract and whether it is on a "take or pay" basis, (e) the amount paid, and the contract utilisation to date, on "take or pay" contracts and (f) a comparison of the cost with the national tariff prices for providing the same type and volume of services? (Q21)

Answer

  1.  The information requested is given in tables 21a to 21c.

  2.  It is not possible to directly compare the ISTC prices to tariff. To the extent that prices can be compared, the Department estimates that on average wave 1 contract prices are approximately 11% higher than the amount payable on the basis of national tariff plus local market forces factor.

  3.  The Department estimates that on average across phase 2, contract prices are approximately equal to the amount payable on the basis of national tariff plus local market forces factor.

  4.  In determining the above percentages, the national tariff prices of both the procedure and all pathway activities for that procedure plus local market forces factor are compared to contract prices.

Table 21a

ISTC CONTRACTUAL INFORMATION—BY VOLUME AND HEALTHCARE RESOURCE GROUP


  
  
  
  
  
  
  
Total contracted procedures broken down by Healthcare Resource Group (HRG) Chapter
Contract
Location
Hospital name
Provider name
Total
contracted
diagnostics
Total
contracted
procedures
General
surgery
Orthopaedics
Nervous
system
Ophthalmology
ENT
Thoracic
procedures
Digestive
system
Urology
Gynaecology
Renal
dialysis

LP2BradfordEccleshill NHS Treatment Centre Nations Healthcare
88,583
28,564
4,703
4,530
-
407
1,015
-
10,567
4,168
3,175
-
LP3BurtonMidlands NHS Treatment Centre Nations Healthcare
-
62,906
6,443
10,665
3,859
15,242
6,441
62
5,346
12,924
1,925
-
LP4Trent and South Yorkshire Barlborough NHS Treatment CentrePHG
-
21,563
-
21,563
-
-
-
-
-
-
-
-
LP5DaventryThe Birkdale Clinic   
-
5,155
144
392
319
3,841
217
-
242
-
-
-
LP7Shepton MalletShepton Mallet NHS Treatment Centre UKSH
-
56,242
2,000
22,242
-
12,000
-
-
20,000
-
-
-
LP8Greater Manchester Greater Manchester Surgical CentreNetcare Healthcare
-
44,863
5,782
20,667
-
-
14,351
-
3,267
796
-
-
LP9PlymouthPeninsula NHS Treatment Centre PHG
-
16,512
-
16,512
-
-
-
-
-
-
-
-
GC4East CornwallBodmin NHS Treatment Centre Ramsay
-
26,495
215
40
-
7,148
-
-
14,984
182
3,926
-
GC4East LincolnshireBoston NHS Treatment Centre Ramsay
2,259
6,955
572
-
-
3,401
-
-
2,392
590
-
-
GC4North East Yorkshire and North Lincolnshire Clifton Park NHS Treatment CentreRamsay
-
8,638
581
7,621
-
-
-
-
436
-
-
-
GC4Northumberland, Tyne and Wear The Cobalt NHS Treatment CentreRamsay
-
9,706
2,221
-
-
-
-
-
7,485
-
-
-
GC4West LincolnshireGainsborough NHS Treatment Centre Ramsay
200
5,647
447
996
-
1,574
-
-
1,464
1,166
-
-
GC4SouthamptonNew Hall NHS Treatment Centre Ramsay
-
13,737
-
13,737
-
-
-
-
-
-
-
-
GC4North OxfordHorton NHS Treatment Centre Ramsay
-
15,970
-
15,970
-
-
-
-
-
-
-
-
GC4Thames Valley (Milton Keynes) Blakelands NHS Treatment CentreRamsay
  
8,292
260
4,185
-
-
-
-
3,384
321
142
-
GC4Thames Valley (Reading) Reading NHS Treatment CentreRamsay
-
5,935
28
3,024
-
-
-
-
2,141
271
471
-
GC5ENottinghamNottingham NHS Treatment Centre at QMC Nations Healthcare
-
116,743
30,148
9,565
12,709
741
6,120
1,248
43,893
75
12,244
-
GC5 WCheshire and Merseyside Cheshire and Merseyside NHS Treatment Centre Interhealth
-
24,819
-
24,819
-
-
-
-
-
-
-
-
GC5 WKidderminsterKidderminster NHS Treatment Centre Interhealth
-
9,002
10
8,347
645
-
-
-
-
-
-
-
GC6MaidstoneMid Kent NHS Treatment Centre PHG
-
44,742
2,458
4,142
334
90
270
2,276
29,690
112
5,370
-
GC7North East LondonNorth East London NHS Treatment Centre PHG
-
49,592
2,252
18,138
-
11,976
6,106
-
4,756
6,364
-
-
GC8BrightonSussex Orthopaedic NHS Treatment Centre Care UK
-
26,438
141
26,297
-
-
-
-
-
-
-
-
GC8HavantHavant NHS Diagnostic Centre Care UK
54,117
554
-
554
-
-
-
-
-
-
-
-
GC8MedwayWill Adams NHS Treatment Centre Care UK
-
19,792
358
5,286
-
1,530
-
-
6,185
6,433
-
-
GC8PortsmouthSt Mary's NHS Treatment Centre Care UK
135,117
31,688
6,926
4,010
-
8,160
-
-
12,592
-
-
-
GC8WycombeMid & South Buckinghamshire NHS Diagnostic Centre Care UK
74,880
-
-
-
-
-
-
-
-
-
-
-
OC123Ophthalmic Chain Cataract InitiativeNetcare Healthcare
  
44,735
-
-
-
44,735
-
-
-
-
-
-
D01LondonLondon Diagnostics (Various Sites) InHealth Group
1,000,510
-
-
-
-
-
-
-
-
-
-
-
D05West Midlands ( Terminated ) West Midlands Diagnostics (Various Sites) Mercury
120,099
-
-
-
-
-
-
-
-
-
-
-
D8NPET CT NorthPET CT North (Various Sites) Alliance
48,148
-
-
-
-
-
-
-
-
-
-
-
D8SPET CT SouthPET CT South (Various Sites) InHealth Group
42,678
-
-
-
-
-
-
-
-
-
-
-
E01Avon, Gloucestershire & Wiltshire Avon, Gloucestershire & Wiltshire (Various Sites) UKSH
4,629
125,246
9,735
31,949
-
23,340
24,676
-
11,708
8,087
15,750
-
E05Cumbria & Lancashire Cumbria & Lancashire Electives (Various Sites) Ramsay
6,821
46,106
4,162
33,683
-
19
3,496
-
4,745
-
-
-
E06Cheshire & Merseyside Cheshire & Merseyside Elactives (Various Sites) Spire
783
21,410
5,981
1,879
169
-
5,189
-
2,580
4,517
1,095
-
E08Greater Manchester NHS Clinical Assessment and Tretament Service (CATS) (Various Sites) Care UK
558,471
36,947
6,336
-
-
-
-
-
29,379
1,232
-
-
E09Hampshire & Isle of Wight Southampton NHS Treatment CentrePartnership Health
21,704
101,602
8,546
23,641
630
6,094
20,802
-
7,013
25,095
9,781
-
E15Northumberland, Tyne and Wear SPIRE Hospital WashingtonSpire
746
17,206
3,943
9,985
-
-
1,185
-
765
-
1,328
-
E16Various Main Renal Units Renal Dialysis (Various Sites)Fresenius
-
853,615
-
-
-
-
-
-
-
-
-
853,615
Contractual total
  
  
  
  
2,159,747
1,907,417
104,393
344,439
18,665
140,297
89,869
3,586
225,013
72,333
55,207
853,615
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

Source:
NHS Contracting, DH
  
Footnotes:
1.  The contracted activity is indicative only and can vary significantly from actual activity through substitution of higher or lower value procedures across the contract term.
2.  All information provided has been based on the most up to date information at the time of submission.
3.  The specialties are referenced to HRG Chapter. "General Surgery" includes HRG Chapters E, G, J, K, P, Q and S. HRG information is available at www.ic.nhs.uk/casemix.
4.  The Department works with sponsors and providers to ensure optimum utilisation of the contracts. This includes changing the case mix to respond to local need and working with providers and PCTs to recover previous under-utilised activity where possible.


Table 21b

ISTC CONTRACTUAL INFORMATION—BY VALUE AND CONTRACT LENGTH


  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
£ million

Contract
Location
Contract term
Contract basis
Total nominal
contract value
(£ million)
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17

LP2Bradford 58 Months Take or Pay
37.96
0.00
0.00
7.87
7.84
7.63
7.99
6.62
0.00
0.00
0.00
0.00
  
  
  
LP3Burton 60 Months Take or Pay
77.87
0.00
0.00
0.00
11.32
15.45
15.81
15.89
15.22
4.18
0.00
0.00
  
  
  
LP4Trent and South Yorkshire 60 Months Take or Pay
98.37
0.00
0.00
19.02
19.02
19.84
20.38
20.11
0.00
0.00
0.00
0.00
  
  
  
LP5Daventry Terminated Take or Pay
4.87
1.39
1.93
1.55
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
  
  
  
LP7Shepton Mallet 60 Months Take or Pay
110.88
0.00
0.00
14.98
20.77
21.96
23.09
23.93
6.16
0.00
0.00
0.00
  
  
  
LP8Greater Manchester 60 Months Take or Pay
86.14
0.00
0.00
11.81
16.96
17.68
18.77
18.86
2.06
0.00
0.00
0.00
  
  
  
LP9Plymouth 60 Months Take or Pay
59.46
0.00
0.00
10.52
11.49
12.01
12.47
11.90
1.07
0.00
0.00
0.00
  
  
  
GC4East Cornwall 51 Months Take or Pay
25.41
0.00
0.00
2.50
5.49
5.67
5.88
5.86
0.00
0.00
0.00
0.00
  
  
  
GC4East Lincolnshire 59 Months Take or Pay
9.25
0.00
0.00
2.18
1.83
1.72
1.77
1.74
0.00
0.00
0.00
0.00
  
  
  
GC4North East Yorkshire and North Lincolnshire 50 Months Take or Pay
42.24
0.00
0.00
2.89
9.56
10.26
10.82
8.71
0.00
0.00
0.00
0.00
  
  
  
GC4Northumberland, Tyne and Wear 58 Months Take or Pay
10.72
0.00
0.00
2.34
1.99
2.08
2.16
2.15
0.00
0.00
0.00
0.00
  
  
  
GC4West Lincolnshire 60 Months Take or Pay
6.21
0.00
0.00
1.45
1.23
1.17
1.21
1.14
0.00
0.00
0.00
0.00
  
  
  
GC4Southampton 60 Months Take or Pay
42.67
0.00
0.00
9.67
8.22
8.62
8.94
7.22
0.00
0.00
0.00
0.00
  
  
  
GC4North Oxford 65 Months Take or Pay
80.90
0.00
0.00
6.22
18.37
15.60
15.55
15.95
9.21
0.00
0.00
0.00
  
  
  
GC4Thames Valley (Milton Keynes) 45 Months Take or Pay
12.30
0.00
0.00
1.81
3.10
2.41
2.50
2.49
0.00
0.00
0.00
0.00
  
  
  
GC4Thames Valley (Reading) 60 Months Take or Pay
14.80
0.00
0.00
3.22
2.75
2.88
2.98
2.97
0.00
0.00
0.00
0.00
  
  
  
GC5ENottingham 60 Months Take or Pay
208.76
0.00
0.00
0.00
0.00
0.00
20.14
38.60
43.32
44.97
45.77
15.97
  
  
  
GC5 WCheshire and Merseyside 60 Months Take or Pay
112.33
0.00
0.00
0.00
16.20
22.40
21.83
23.86
23.94
4.09
0.00
0.00
  
  
  
GC5 WKidderminster 60 Months Take or Pay
27.16
0.00
0.78
4.80
4.98
5.43
5.93
5.24
0.00
0.00
0.00
0.00
  
  
  
GC6Maidstone 59 Months Take or Pay
37.00
0.00
0.00
0.00
2.66
6.69
7.18
7.55
7.96
4.97
0.00
0.00
  
  
  
GC7North East London 60 Months Take or Pay
109.43
0.00
0.00
0.00
5.02
20.81
21.64
22.00
22.57
17.39
0.00
0.00
  
  
  
GC8Brighton 60 Months Take or Pay
102.90
0.00
0.00
0.00
16.48
20.44
20.96
20.93
21.16
2.94
0.00
0.00
  
  
  
GC8Havant 30 Months Take or Pay
6.41
0.00
0.00
0.00
0.00
0.42
2.18
2.17
1.64
0.00
0.00
0.00
  
  
  
GC8Medway 60 Months Take or Pay
27.15
0.00
0.00
3.25
5.01
5.26
5.44
5.42
2.78
0.00
0.00
0.00
  
  
  
GC8Portsmouth 59 Months Take or Pay
66.08
0.00
0.00
4.65
12.41
13.13
13.38
13.36
9.16
0.00
0.00
0.00
  
  
  
GC8Wycombe 60 Months Take or Pay
10.82
0.00
0.00
1.76
1.97
2.07
2.15
2.14
0.73
0.00
0.00
0.00
  
  
  
OC123Ophthalmic Chain 64 Months Take or Pay
42.59
2.00
11.42
10.75
5.79
6.09
6.53
0.00
0.00
0.00
0.00
0.00
  
  
  
D01London60 Months GFV (3)
105.90
  
  
  
  
25.65
15.53
18.90
21.21
24.61
  
  
  
  
  
D05West Midlands (Terminated) TerminatedGFV (3)
20.15
  
  
  
  
20.15
  
  
  
  
  
  
  
  
  
D8NPET CT North60 Months GFV (3)
50.28
  
  
  
  
  
6.44
9.39
11.06
11.49
11.89
  
  
  
  
D8SPET CT South60 Months GFV (3)
47.01
  
  
  
  
  
6.63
8.80
9.70
10.69
11.20
  
  
  
  
E01Avon, Gloucestershire & Wiltshire 72 MonthsGFV (3)
236.39
  
  
  
  
  
  
11.53
37.61
38.97
39.98
41.02
42.09
25.19
  
E05Cumbria & Lancashire 60 MonthsGFV (3)
117.84
  
  
  
  
5.15
21.99
24.54
25.03
25.80
15.33
  
  
  
  
E06Cheshire & Merseyside 48 MonthsGFV (3)
42.02
  
  
  
  
7.86
10.46
10.73
11.10
1.88
  
  
  
  
  
E08Greater Manchester 84 MonthsGFV (3)
203.08
  
  
  
  
  
1.43
26.15
29.51
30.30
29.50
29.70
30.40
26.10
  
E09Hampshire & Isle of Wight 84 MonthsGFV (3)
183.65
  
  
  
  
  
7.40
22.65
24.70
26.60
27.30
28.20
29.10
17.70
  
E15Northumberland, Tyne and Wear 60 MonthsGFV (3)
47.98
  
  
  
  
5.00
9.35
10.06
10.32
10.60
2.65
  
  
  
  
E16Various Main Renal Units 108 MonthsGFV (3)
110.16
  
  
  
  
0.99
6.65
8.83
11.01
12.14
13.35
14.51
15.83
16.93
9.93
Contractual total        
  
2,635.13
3.40
14.13
123.25
210.46
312.49
363.55
438.36
358.23
271.61
196.97
129.40
117.41
85.92
9.93
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

Source:
NHS Contracting, DH
  
Footnotes:
1.  The total nominal contract value represents the total real contract value, adjusted for actual inflation to date, and HMT forecast inflation to contract expiry as at June 2009.
2.  All information provided has been based on the most up to date information at the time of submission.
3.  Guaranteed Fixed Value (GFV)—prices are split into two elements—base and activity costs. The guaranteed payment each period to the provider is based on the aggregate of the base costs multiplied by the GFV percentage defined within the contract. This percentage varies by contract and by contract year. The net result is lower guaranteed payments made to providers under these contracts in comparison to the Take or Pay contracts.


Table 21c

ISTC CONTRACTUAL INFORMATION—TAKE OR PAY CONTRACT UTILISATION AND PAYMENTS TO DATE


Contract
Location
Hospital name
Provider name
Contract
utilisation
to date
(31 May 2009)
Contract payment
to date
(31 May 2009)
(£000s)

LP2BradfordEccleshill NHS Treatment Centre Nations Healthcare
85%
34,738
LP3BurtonMidlands NHS Treatment Centre Nations Healthcare
78%
44,942
LP4Trent and South Yorkshire Barlborough NHS Treatment CentrePHG
88%
81,612
LP5DaventryThe Birkdale Clinic   
97%
5,153
LP7Shepton MalletShepton Mallet NHS Treatment Centre UKSH
99%
85,306
LP8Greater Manchester Greater Manchester Surgical CentreNetcare Healthcare
61%
68,224
LP9PlymouthPeninsula NHS Treatment Centre PHG
101%
48,521
GC4East CornwallBodmin NHS Treatment Centre Ramsay
72%
20,484
GC4East LincolnshireBoston NHS Treatment Centre Ramsay
84%
7,798
GC4North East Yorkshire and North Lincolnshire Clifton Park NHS Treatment CentreRamsay
89%
36,468
GC4Northumberland, Tyne and Wear The Cobalt NHS Treatment CentreRamsay
88%
8,927
GC4West LincolnshireGainsborough NHS Treatment Centre Ramsay
76%
5,302
GC4SouthamptonNew Hall NHS Treatment Centre Ramsay
79%
35,608
GC4North OxfordHorton NHS Treatment Centre Ramsay
79%
39,421
GC4Thames Valley (Milton Keynes) Blakelands NHS Treatment CentreRamsay
75%
11,031
GC4Thames Valley (Reading) Reading NHS Treatment CentreRamsay
93%
12,340
GC5ENottinghamNottingham NHS Treatment Centre at QMC Nations Healthcare
88%
25,522
GC5 WCheshire and Merseyside Cheshire and Merseyside NHS Treatment Centre Interhealth
94%
64,121
GC5 WKidderminsterKidderminster NHS Treatment Centre Interhealth
86%
22,991
GC6MaidstoneMid Kent NHS Treatment Centre PHG
97%
17,766
GC7North East LondonNorth East London NHS Treatment Centre PHG
78%
51,136
GC8BrightonSussex Orthopaedic NHS Treatment Centre Care UK
98%
61,358
GC8HavantHavant NHS Diagnostic Centre Care UK
53%
2,944
GC8MedwayWill Adams NHS Treatment Centre Care UK
52%
19,600
GC8PortsmouthSt Mary's NHS Treatment Centre Care UK
71%
45,795
GC8WycombeMid & South Buckinghamshire NHS Diagnostic Centre Care UK
86%
8,992
OC123Ophthalmic Chain Cataract InitiativeNetcare Healthcare
77%
41,562
     Contractual total   
85%
907,664

Source:
NHS Contracting, DH
  
Footnotes:
1.  All information provided has been based on the most up to date information at the time of submission.





 
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