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Regional Health Authorities (Finance)

Volume 927: debated on Wednesday 9 March 1977

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asked the Secretary of State for Social Services (1) what allowance is made by his Department, when calculating the essential revenue requirements of regional health authorities, for the additional energy costs of new hospitals;(2) if he will consider revising the basic formula for calculating essential revenue requirements of regional health authorities since this is based on the average needs of a number of hospitals and may not take into account the much greater running costs of new hospitals with complex layouts and sophisticated heating and ventilation systems;(3) what allowance is made by his Department when allocating funds to regional health authorities, for the additional cost of specialist branches of medicines, such as oncology, which require more highly trained staff.

The allowance made hitherto in the revenue allocations to regional health authorities in England for the running costs of new hospitals has reflected the known expenditure of a sample of hospitals of comparable size and function: the allowance for energy costs has been related to cubic capacity. Additions have been made to global sums so calculated where developments included special features with significant extra costs not adequately covered in the basic sum, for example air conditioning, renal units and major radio isotope departments. 1976–77 marks the end of the phasing out of special allowances in revenue allocations to regional authorities for the revenue expenditure consequences of capital schemes.