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NHS Finance

Volume 449: debated on Wednesday 19 July 2006

To ask the Secretary of State for Health if she will make a statement on how the market forces factor formula is used in determining payments to hospital trusts; what assessment she has made of its appropriateness; and whether she plans to review its operation. (82346)

For activity within the scope of payment by results, national health service trusts are paid by their commissioners according to the national tariff. These payments are adjusted by the relevant market forces factors (MFF). The MFF is intended to reflect unavoidable variations in costs directly related to location.

The MFF is kept under constant review, and its development has been overseen by the advisory committee on resource allocation (ACRA). As part of its work for the Department, ACRA will review the MFF and make recommendations to Ministers in 2007-08.

To ask the Secretary of State for Health which variables are included in the weighted capitation formula for primary care trust allocations; and from what data sources figures for each variable are determined. (84026)

“Resource Allocation: Weighted Capitation Formula (Fifth Edition)” lists the variables included in the weighted-capitation formula and their data sources. A copy of this document is available in the Library.

To ask the Secretary of State for Health what the latest forecast year-end gross NHS deficit is for 2006-07. (85856)

The 2005-06 provisional outturn is the most recently published data on the national health service financial position. This data shows that provisionally the NHS reported a gross deficit of just under £1.3 billion, and a net deficit of £512 million. I intend to publish the first quarterly finance report for the NHS for 2006-07, on 11 August 2006.