Clause 11 - Power of Secretary of State to give financial assistance
Health and Social Care (Community Health and Standards) Bill
2:30 pm
Mr Chris Grayling (Epsom and Ewell, Conservative)
Not under the national tariff. The Minister made the point this morning that once the tariff is introduced, foundation trusts that can carry out services for a lower cost than the national tariff rate will be able to retain that difference as a profit
margin and reinvest it. However, my understanding—the Minister can correct me if I am wrong—is that a non-foundation trust will not have the same right. Therefore, it will not have the same incentive to reduce costs and become more efficient. It will not be able to generate additional funds in that way to enable it to invest in more and better services.