No. There is a duty to make a residual value payment at contract expiry where the requirement exists under the terms of an independent sector treatment centres contract.
The Department has not issued primary care trusts (PCTs) with guidance on the commissioning of services from independent sector treatment centres. It is for PCTs to determine their commissioning requirements.
The Department has requested that PCTs review their capacity requirements and has provided guidance to support the competitive procurement of treatment centre services. PCTs will review contracts on a case-by-case basis and commission new services where capacity is required.
The national health service tariff does not apply to procedures undertaken in Wave One and Phase Two Independent Sector Treatment Centres. Providers are paid for services according to the terms and conditions of their contracts. Future contracts to provide services from treatment centres will be paid at the NHS tariff.
Contracts for the centrally procured wave one independent sector treatment centres are scheduled to end from 2010. Each contract will be reviewed on a case-by-case basis and new services will be commissioned where local commissioners determine that capacity is required.
The total potential expiry cost (including residual value) for wave one independent sector treatment centres is approximately £200 million.