Payment by Results

Health written question – answered on 14th June 2006.

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Photo of John Hemming John Hemming Liberal Democrat, Birmingham, Yardley

To ask the Secretary of State for Health what formula is used for calculating payments to a hospital under payment by results.

Photo of Andy Burnham Andy Burnham Minister of State (Department of Health) (Delivery and Quality)

Under payment by results, hospitals are paid according to the number and complexity of cases treated and on the basis of the national tariff. The national tariff paid to individual providers is adjusted for market forces factor (MFF), to account for unavoidable cost differences in land, labour and buildings. This could be expressed as a formula: activity x (tariff x MFF).

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