Monitor has published an independent report to help with the development of its policy on approving local modifications to the national tariff. Entitled A methodology for approving local modifications to the national tariff, the report was commissioned by Monitor from Frontier Economics and forms part of the growing evidence base that Monitor will use to determine its approach as sector regulator.
Adrian Masters, Monitor director of strategy, said: “Improving the pricing of NHS services is essential to help commissioners make better decisions for their patients, and to ensure that hospitals and other providers of care are fairly reimbursed. “There are sometimes variations in terms of the pressures and challenges facing local health services. Making local modifications to the national tariff is a way of recognising that a one size fits all approach to setting prices will not always be appropriate. “If a provider can demonstrate that it cannot provide services at the tariff price that are valued by patients and commissioners, it may be appropriate for Monitor to approve a local modification to the national tariff. Evidence-based local modifications will increase transparency about how we spend money in the NHS, provide stability for those that need it, and end hidden bailouts.”
