Revised Financial Arrangements NHSE introduced temporary financial arrangements

Revised Financial Arrangements NHSE introduced temporary financial arrangements for NHS providers initially to cover period 1 st April to 31 st July 2020. • Payment by Results (Pb. R) suspended Block payments based on last year value • • uplifted for inflation 2. 8% • no growth, • no efficiency requirement/CIP Top up payments to take into account additional costs of delivery, followed by a “True Up” to enable trusts to achieve a break-even position on BAU Payments to suppliers now within 7 days Been extended to 31 st October 2020, likely to be for whole year

Revised Financial Arrangements To create other capacity to meet demands for C 19 identified a number of other essential providers: • Block purchased existing private hospital capacity • Special arrangements for Hospices block purchased additional capacity • Support for Voluntary and Charity sector organisations

Revised Financial Arrangements COVID-19 Additional Costs • £ 1. 3 bn of national funding for NHS organisations claimed on a reimbursement basis • Meet costs of PPE • Provide national funding to facilitate enhanced discharge processes, NHS paying for all new and enhanced care packages • £ 1. 6 bn LAs to meet costs of additional social care and to assist care sector with financial support

Revised Financial Arrangements Challenge is to move back to a “new” system • Pb. R is no longer seen as the “currency” to use on going but we want to retain the data collection and coding aspects. • Will not be going back to Pb. R anytime soon • Blended payments, fixed and variable elements • Capitated budgets • OHCP - covering whole population health needs