E-mail From Patricia Hamilton Chairman Of Women & Children's Services & My Reply
From:
Ian Perkin
Sent:
17 December 2001 16:15
To:
Patricia Hamilton
Subject:
RE: Additional CRP to be achieved by 31 March
Dear
Pat
Thank
you for your e-mail message concerning the costs that we recover from the
Commissioners in respect of the NNU. I
think there is probably some a little misunderstanding on the part of the SDU
leader in that it is suggested that our "prices" are unrealistically
low. Firstly since the ending of the Internal Market there has been
no requirement on NHS Trusts to produce any kind of prices for the clinical
services that we provide. What
happens under the new arrangements is that whatever the level of activity and
income that we agreed in total in the previous financial year becomes that base
line for the following year. Adjustments are then made to the base line figure
to take account of approved business case developments, inflation, cost
reductions and any other agreed alterations, to arrive at a new total baseline
figure for the new financial year. At
no point in this process are any prices or activity related to individual
clinical specialities to determine the total amount of the income that the Trust
will receive from commissioners.
Quite
separately once the Service Level Agreements have been struck with commissioners
the Trust does publish a marginal cost tariff for each speciality which is used
to calculate any additional sums due or to be refunded, in respect of variations
of activity from the level included in the SLA which are based on the previous
years estimated activity. These
are costs that will be influenced by individual SDU's provided General Managers
can feed back to the Finance Department details about the stepped costs that
will be involved in the provision of clinical activity provided to commissioners
above the level included in the agreed SLA. It should be noted however, that
this will only have an impact on the finances of the service during the year and
will not help with the requirement to achieve the Cost Reductions that the NHS
require us to feed into the SLA's.
I
hope the above explains the situation, but should you have any further queries
please do let me know.
Ian
-----Original
Message-----
From:
Patricia Hamilton
Sent:
13 December 2001 16:05
To:
Ian Perkin
Subject:
FW: Additional CRP to be achieved by 31 March
Dear
Ian
Please
can you help me answer the concerns of the NNU SDU leader that the prices set
for the NNU services are unrealistically low and below other London prices.
I
am going to have trouble getting CRP out of them unless I can refute this.
Pat
Patricia
Hamilton
Service
Centre Chair, Children and Women's Services