News / MPs call for more speedy tariff changes

The health and care system is not changing quickly enough, threatening the financial stability of providers, particularly those in the acute sector, according to the Commons health committee.

The committee report on its annual inquiry into Monitor’s work said significant innovation in healthcare delivery was needed, but there had been insufficient change to date.

The MPs said Monitor had not done enough to reform the tariff. It urged Monitor and NHS England to review the tariff to eliminate perverse incentives and incentivise service change.

Committee chair Stephen Dorrell (right) said the NHS had opportunities to adopt new methods of delivery but the pace of change was often too slow. ‘Monitor has a vital role to play in promoting change and removing obstacles to change. It must identify problems earlier, and act quicker to resolve them,’ he said.

The HFMA agreed that significant innovation was required, but the process was complex. In a statement it said: ‘The HFMA fully supports the need to change tariff arrangements to support new ways of working. However, effective new tariffs cannot be introduced overnight. They need to be underpinned by robust cost data and tested so that any changes in funding flows can be understood and planned for.

‘There are already opportunities within the national tariff to use locally determined prices to support different ways of working and more integrated care.’