Objections to how prices for NHS services are calculated
Proposals to revise the objection process for setting a pricing system for NHS services in England.
The Health and Social Care Act (2012) introduced a new independent, transparent and fair pricing system for NHS services that moved the responsibility for pricing from the Department of Health to Monitor and NHS England. It required them to work together to create a ‘national tariff’ that set prices for NHS services in England and to develop new payment models across different services.
To develop a national tariff, Monitor and NHS England engage with commissioners and providers of NHS services and other interested parties. The Act specified an objection procedure, which allows commissioners and providers to object to the chosen method for calculating national prices, rather than the price itself. If the percentage of objections meets thresholds set by the Secretary of State, Monitor cannot adopt and publish the national tariff and must do one of the following:
- reconsider the proposed method and publish a revised tariff for consideration
- refer the method and objections to the Competition and Markets Authority
This consultation is about proposals to change the objection thresholds that were prescribed by regulations in 2013.