The introduction of Payment by Results (PbR) represents a major change to financial management in the NHS. Payment by Results offers both significant benefits and challenges. We have made it a focus of our audit work and national studies programme.
Payment by Results aims to support NHS modernisation by paying hospitals for the work they do, rewarding efficiency and quality. It also carries risks that need to be managed effectively both locally and nationally.
In July 2004 we published a report which examined the introduction of Payment by Results. We later followed this up with our second national report on PbR which reviewed the experiences of the system so far. We are currently scoping a third national study, which will examine how the NHS is responding to the financial management challenges of the impact of PbR and the configuration of services.
In January 2006 the Department of Health asked the Commission to pilot key components of a proposed PbR assurance framework. As a result we presented a report to the Department of Health highlighting our findings and a number of recommendations. The Department of Health have accepted the recommendations and have asked us to carry out a programme of work to implement a data assurance framework.
The Commission is committed to playing a vital role in helping NHS bodies to adapt to the new system of Payment by Results and realise the benefits.