06 August 2009
Private firms will not be paid a premium on top of NHS rates under new contracts for independent sector treatment centres, health minister Mike O’Brien has confirmed.
But the NHS will be liable to pay out huge sums under clauses triggered by failure to renew existing contracts on the same terms.
Contracts drawn up by the Department of Health for phase one of the ISTC programme gave the private providers a premium on top of the NHS tariff.
The NHS is expected to have to pay £229m in ‘residual value’ on existing ISTC buildings.
The health service will also have to pay more than £200m for unused operations under first-wave contracts that gave providers guaranteed volumes of work.
Private firms will not be paid a premium on top of NHS rates under new contracts for independent sector treatment centres, health minister Mike O’Brien has confirmed.
But the NHS will be liable to pay out huge sums under clauses triggered by failure to renew existing contracts on the same terms.
Contracts drawn up by the Department of Health for phase one of the ISTC programme gave the private providers a premium on top of the NHS tariff.
The NHS is expected to have to pay £229m in ‘residual value’ on existing ISTC buildings.
The health service will also have to pay more than £200m for unused operations under first-wave contracts that gave providers guaranteed volumes of work.
