Health CommitteeSupplementary written evidence from NHS Confederation (PE 32A)

As you may recall, when Jo Webber and I gave oral evidence to the Committee’s public expenditure inquiry on 13 September 2011 I undertook to clarify the proportion of hospitals’ income which was tariff.

I stated that around 60% of acute activity was covered by the tariff. This figure is supported by the December 2010 National Audit Office report, “Management of NHS hospital productivity” which stated, “in 2010 around 40% of hospitals’ income is not covered by Payment by Results” (page 7). It is worth noting, however, that the proportion of a provider’s activity which is covered by the tariff varies significantly because some services (for example, ambulance services and many community and mental health services) are not on tariff. I hope this clarification is helpful.

September 2011

Prepared 23rd January 2012