John Hemming (Birmingham, Yardley, Liberal Democrat)
To ask the Secretary of State for Health which hospitals she identified before the introduction of payment by results as being at risk of deficits as a result of its introduction; and what percentage deficit she expected for each one.
Liam Byrne (Parliamentary Under-Secretary, Department of Health; Birmingham, Hodge Hill, Labour)
The movement from local prices to a national tariff means that the income of most national health service providers will change. We undertook an exercise to estimate changes in income for organisations to inform the transition from local prices to national tariff. Transitional arrangements channel extra funds into organisations which lose income under payment by results, to give them time to adjust to the new arrangements.