The first phase of the independent sector treatment centre (ISTC) programme was delivered and funded by the private sector. In the event that current contracts are not renewed, the Department would be required to pay any residual value in return for the buildings and equipment. This funding will be accommodated in the capital plan in the year in which the funding is required.
The Department allocates funding directly to primary care trusts (PCTs) based on the relative needs of their populations within the designated area, and in line with the change of pace in policy. A weighted capitation formula determines each PCT's target share of available resources. This enables them to commission similar levels of health services for populations in similar need, as well as reducing avoidable health inequalities. PCTs are responsible for funding activity provided by the ISTCs they sponsor, through their general funding allocation described above.