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Welfare reform on the Web (October 2006): National Health Service - funding

Are paid-up ITC millions being consigned to the scrapheap?

A. Moore

Health Service Journal, vol.116, Sept.21st 2006, p.12-15

The Health Service Journal has compiled figures that suggest that independent treatment centres are carrying out fewer procedures than their contracts require. However, the terms of those contracts are such that where centres do not perform enough procedures to reach a minimum guaranteed value, they still get paid, potentially costing the NHS millions of pounds for unused capacity. NHS bodies are negotiating with providers to roll unused capacity forward to later in the five-year contracts.

DoH moots roll-out of central funds to local organisations

N. Edwards

Health Service Journal, vol.116, Sept. 14th 2006, p.5

The new NHS chief executive David Nicholson says the Department of Health should plan to push large sections of central funding out to local health organisations, where it will be better spent and will aid financial planning. He also pledged to speed up decision making over policy areas such as the payment by results tariff calculation.

Golden wonder

A. O’Dowd

Health Service Journal, vol.116, Sept. 21st 2006, p.26-27

The NHS has improved significantly thanks to a massive injection of funding by the New Labour government. However, the rate of increase in the NHS budget is expected to slow from 2008. It now faces the challenge of achieving financial balance while maintaining or improving quality of care.

Hewitt demands more rigour in NHS investment

J. Carvel

The Guardian, Sept. 12th 2006, p.11

Health Secretary Patricia Hewitt intends to curb NHS spending by £5bn by stopping investment in facilities deemed unnecessary and/or too costly. Under the new system, services that fail to attract enough patients may be forced to close. Spending on new buildings and equipment will only be permitted if the NHS can provide a business plan showing that it can afford the repayments and that the service can attract a steady flow of patients.

Transitional arrangements following NHS reorganisation and pending national framework implementation: consultation

Department of Health


This consultation asks for comments and drafting points on the draft directions and associated guidance which deal with the transitional arrangements for local continuing care policy, for the interim period from NHS reorganisation until the implementation of the proposed national framework. These directions are due to be introduced on October 1st 2006 to coincide with primary care trust reconfiguration.

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