Department of Health and Social Care
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FUTURE OF INDEPENDENT SECTOR TREATMENT CENTRES
The future use of Independent Sector Treatment Centres (ISTCs) in the NHS, will be fairer and on the same terms as other providers of NHS services, Health Minister Mike O’Brien announced today.
Under the changes set out today, each contract will be reviewed on a case-by-case basis and new services will be commissioned by the local Primary Care Trust where they are designed to meet local needs, provide value for money and benefit patients in that community. Primary Care Trusts are already responsible for procuring a broad range of services from NHS and independent sector providers on behalf of local patients.
In future, contracts to provide services from these treatment centres will also be paid under the same pricing arrangements as NHS providers. Services will be delivered under the terms and conditions of the standard NHS national contract for acute hospital services – the same contract used by NHS providers.
Where the NHS identifies an ongoing need for services, there will be a competitive tendering process and bidders, including those from the independent sector, will be invited to deliver services at NHS tariff prices.
Health Minister, Mike O’Brien said:
“We need providers of NHS services, to deliver safe and high quality care for patients and value for money, but there should also be consistency in pricing and contracts. In the past the Independent Sector have sometimes been guaranteed payments. In the future it is intended that contracts will operate at NHS tariff prices using the standard NHS contract for hospital services.
“Where independent sector providers offer value for money, innovation and high quality patient care, they have a role to play within the NHS. Independent Sector Treatment Centres have helped patients by increasing choice and capacity, and reducing waiting times.
“Greater local control and day-to-day management will ensure these services are better integrated in to the local health system and reflect local needs.”
The changes will take effect in the second wave of ISTC contracts, the first of which will be advertised in August 2009. The first wave of contracts are due to end from 2010. Both independent sector and NHS providers will be eligible to bid for the new contracts, which will be commissioned locally by the NHS, rather than by the Department of Health.
Independent Sector Treatment Centres (ISTCs) have helped improve health services for patients, reduce waiting times and improve patient choice in the NHS. More than 1.7 million operations, diagnostic assessments and primary care consultations have been provided to NHS patients at ISTCs. ISTCs have pioneered innovative approaches that have delivered improvements for patients in access to services and quality of care, such as fixed site treatment centres typically specialising in a range of elective procedures and mobile diagnostic services to NHS patients in locations close to their home.
Notes to Editors
1. Independent Sector Treatment Centres (ISTCs) are dedicated units that offers safe, fast, pre-booked day and short-stay surgery and diagnostic procedures on behalf of the NHS. They offer a wide range of elective procedures including general surgery, orthopaedics, ophthalmology and ear, nose and throat. They also deliver diagnostic assessments and primary care including a minor injuries walk in service.
2. The ISTC programme was procured in two stages known as Wave One and Phase Two. Wave One was announced in December 2002 with Phase Two following in October 2004. Wave One of the ISTC Programme provides elective procedures, outpatients and diagnostic services, primary care.
3. The first ISTC commenced operations in October 2003, with the final Wave One ISTC commencing services in Nottingham in August 2008. There are currently 25 fixed site Wave One ISTCs and 6 walk-in centres with a commuter focus.
4. Wave One ISTC contracts are due to end from 2010. Each contract will be reviewed on a case-by-case basis and new services will be commissioned by the local PCT where they meet local needs, provide value for money and benefit patients. Where the NHS identifies an ongoing need for services, there will be a competitive procurement process, including an advertisement in the Official Journal of the European Union (OJEU).
5. Bidders will be invited to deliver services at NHS tariff prices, under Payment by Results (PbR), for the services they provide. Services will be delivered under the terms and conditions of the standard NHS national contract for hospital services. This is the same contract used by NHS providers. Payment by Results (PbR) provides a transparent system where payment is linked to activity and adjusted for casemix to ensure a fair and consistent basis for funding.
6. The first contract to expire is the Eccleshill NHS Treatment Centre in Bradford. In August NHS Bradford and Airedale will place an OJEU notice seeking offers from potential bidders inviting bids for a range of healthcare services. A provider will be appointed in February 2010.
7. Consideration of Phase Two contracts has not begun as these do not expire until 2011 - 2017.
8. In the latest patient satisfaction survey, 96% of ISTC patients said their care was “excellent” or “very good”.
For more information, please contact the Department of Health press office on: 020 7210 5221.
Contacts:
Department of Health
Phone: 020 7210 5221
NDS.DH@coi.gsi.gov.uk
