NHS Performance

Andrew George
To ask the Secretary of State for Health pursuant to her oral statement of 7 June 2006, Official Report, column 264, on NHS performance, what assessment her Department has made of the extent to which the budget available to the Royal Cornwall Hospital Trust reflects the health needs of the local population; what assessment she has made of the reasons for its deficit; and who is responsible for tackling the deficit.

Mr. Ivan Lewis
The Department makes revenue allocations to primary care trusts (PCTs) but not to national health service trusts. PCTs commission services from trusts, which are the providers.

In the past, a provider’s income was determined by historical cost and the negotiating ability of local managers. Payment by results is a fairer and more transparent method of rewarding providers.

Under payment by results, the income of the Royal Cornwall Hospitals NHS Trust is determined by the amount of activity which takes place, paid for at the rates specified in the national tariff, and adjusted by the market forces factor. For activity which is outside the scope of the national tariff, prices are agreed locally.

It is for the NHS South West to make any such assessment, and take the necessary action in co-operation with the local NHS. My right hon. Friend the Secretary of State for Health was advised by KPMG as part of the initial assessment for turnaround in February 2006 that Royal Cornwall Hospital NHS Trust was a category one organisation, and would thus require immediate support to deliver a turnaround.

Mr. Lansley
To ask the Secretary of State for Health pursuant to the answer of 21 June 2006, Official Report, column 1948W, on NHS performance, what adjustments she has made to the resource limits of primary care trusts and strategic health authorities under section 97 of the National Health Service Act 1977, as amended, broken down by NHS organisation.

Andy Burnham
To date there have been no adjustments made in the 2006-07 financial year relating to the transfer of surpluses between primary care trusts and strategic health authority (SHA) reserves. The total planned transfers from primary care trusts to SHA reserves for 2006-07 have yet to be finalised.