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Dept of Health

Answer

Mrs. Calton: To ask the Secretary of State for Health how much of the money that has been made available to primary care trusts (PCTs) to assist in the additional costs of moving to payment by results for foundation trusts from 1 April has been allocated to each (a) PCT and (b) foundation trust; and by what formula these allocations were calculated. [182237] Mr. Hutton: All of the additional funding made available to primary care trusts (PCTs), to support their contracting with Wave 1 national health service foundation trusts, was designed to compensate them for the price difference that they were to face in 2004-05 following the move to a national tariff. The funding was made available as non-recurring adjustments to PCT allocations. No allocations were made directly to NHS foundation trusts. The overall impact on NHS foundation trusts income will be dependent on the activity they deliver, in line with the payment by results system. The three elements to the adjustment were calculated as follows: PCT purchasing power adjustment This was calculated as the difference between local and national price for an agreed set of activity. Under the payment by results transition arrangements three quarters of this adjustment was returned by NHS foundation trusts to their host PCTs, whose allocation was adjusted, in turn, by the same amount. PCT growth support This was calculated as 1.2 per cent., of the value of the agreed baseline for each NHS foundation trust. Specialist supplement This was calculated based on the average impact that the move to a national tariff had those Wave 1 NHS Foundation Trusts who were classified as general hospitals. This funding was made available to the host PCTs of those Wave 1 NHS Foundation Trusts classified as teaching or providing specialist services. Information on the allocation adjustment by PCT has been placed in the Library.

Secondary information

Type

Written question

Reference

182237; 423 c940-2W

Session

2003-04

Subjects

Finance Primary care trusts NHS foundation trusts

Link

View this Written question on www.publications.parliament.uk