National tariff 2017–2019

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NHS England and NHS Improvement have proposed a multi-year tariff that covers the next two years, with national prices set until 2019/20. 

Here's a look at the headline proposals for the two-year tariff, as set out in the tariff engagement document published in August 2016 and updated in November 2016 as part of the statutory consultation.

Tariff proposals at a glance

  • Currencies will be revised and based on phase three of the HRG4+ design, which had been planned but was postponed for introduction in 2016/17.
  • The high-cost device list will be updated to remove two device categories and clarifying an existing category; changes are also proposed to the high-cost drug list.
  • New national prices will be created in four areas, including for cochlear implants and complex CT scans.
  • The fixed transfer of follow-up costs into first attendances in outpatient prices will be increased from 10 per cent to 30 per cent, taking into account differences at specialty level, to create a financial incentive to undertake more first attendances
  • The casemix assumptions for the antenatal stage of the maternity pathway will be updated to increase activity allocated to intermediate and intensive levels.
  • Four new best practice tariffs (BPTs) will be introduced, including for COPD, and changes will be made to other BPTs, including for acute stroke care.
  • A new innovation and technology tariff will be introduced to encourage the uptake and spread of innovations in medical technology, defined by a list of new innovations like non-injectable arterial connectors.
  • No changes to current marginal rate rules, such as emergency admissions, although the introduction of a previously proposed rule for specialised services is still being considered.
  • Changes will be made to how specialised services are defined and top-up payments will be amended in line with recommendations from the University of York.
  • Local payment rules for mental health will be changed and linked to locally agreed quality and outcome measures, in line with one of three required options.
Find out more about HRG4+ and multi-year tariffs to help you make sense of the proposals. View our response to the move to a two-year NHS tariff.
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HRG4+ and multi-year tariffs explained

Questions and answers on HRG4+ and multi-year tariffs to help you make sense of the national tariff proposals.

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