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NHS England to give CCGs £75m rebate after new tariff introduced


4 January 2017

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NHS England has agreed to give back £75m to CCG budgets following the introduction of the new payment tariff at the start of this month.

The new payment system, which was announced in August 2016 and includes the HRG4+ currency, will see CCG allocations cut by a total of £156m in 2017/18 and £158m in 2018/19.

NHS Clinical Commissioners (NHSCC) said they raised “serious concerns” with NHS England “over the volatility being caused by the CCG allocation adjustments”.

NHS England has agreed to give back £75m to CCG budgets following the introduction of the new payment tariff at the start of this month.

The new payment system, which was announced in August 2016 and includes the HRG4+ currency, will see CCG allocations cut by a total of £156m in 2017/18 and £158m in 2018/19.

NHS Clinical Commissioners (NHSCC) said they raised “serious concerns” with NHS England “over the volatility being caused by the CCG allocation adjustments”.

In response, NHS England has agreed to soften the impact of the cuts by limiting it to 0.5% of a CCG’s allocation.

While Julie Wood, chief executive of NHSCC, said the redistribution was “a move in the right direction”, she added that it “does not offer a complete solution” as the 0.5% figure is only expected to help 60 CCGs.

Wood added: “All CCGs are working in an incredibly financially challenged climate, with a number of high priority and competing demands on their budgets, and so the reductions to their allocations, even in cases where it is limited to 0.5% will still cause considerable difficulties.

“Many CCGs will still be feeling the impact of the reduction and in a number of cases this will no doubt have affected their ability to close down contracts and commit resources to other essential elements like mental health and primary care.”

The new tariff will set national healthcare prices until 2019 using the HRG4+ currency, which is expected to be an improvement on the current currency as it takes into account patient comorbidity and complexity.

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