Payment by results (PbR) is the financial regime that the majority of hospital and community services in the NHS use. This report reviews experiences of the system so far, assessing its impact nationally and locally and drawing out practical recommendations for NHS bodies and policymakers.
The study highlights the key issues that have arisen with the introduction of PbR during 2004/05 and the main lessons that can be learnt from the early implementers.
PbR is based on a risk assessment, which means it is only undertaken where PbR is considered to be a significant risk. Nevertheless, the findings will provide an important benchmark on how prepared most NHS bodies are for PbR, looking particularly at:
- organisational awareness
- preparation and implementation
- adherence to Department of Health guidance
- data (Fit for Purpose)
- financial management
- contract management
- partnership working
- capacity
The main output from the work is a national report, published in October 2005, which seeks to influence local NHS bodies in their implementation of Payment by Results and inform refinement of the national policy.