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To ask the Secretary of State for Health, what the differences were between the methodology of the Market Forces Adjustment Factor for (a) 2004-05 and (b) 2005-06; what effect this has had on the allocation of funds to the hospital trusts in Blackpool and Preston; for what reasons Blackpool and...

Asked by

Michael Jack (Conservative)

Answering body

Department of Health

Type

Written questions

Status

Answered

Tabled on

17 March 2005

For answer on

24 March 2005

Answered on

24 March 2005

Mr. Jack: To ask the Secretary of State for Health what the differences were between the methodology of the market forces adjustment factor for (a) 2004-05 and (b) 2005-06; what effect this has had on the allocation of funds to the hospital trusts in Blackpool and Preston; for what reasons Blackpool and Preston have different allocations; and when the trusts received details of their 2005-06 allocations using the revised market forces adjustment factor. [223403] Mr. Hutton: [holding answer 22 March 2005]: The Payment by results market forces factor (MFF) used in 2004-05 was updated for 2005-06 to take account of the most recently available data on earnings, expenditure, land values and building costs. Following advice to Ministers from the independent Advisory Committee on resource allocation, we also made a change to the methodology to make it more sensitive to cost pressures within individual primary care trust areas, rather than the larger areas previously used. Full details are available on the Department's website at: www.dh.gov.uk/assetRoot/04/10/02/99/04100299.pdf. In 2004-05, the MFF was a determinant of the prices paid by primary care trusts (PCTs) to national health service trusts for only 48 groups of procedures (known as healthcare resource groups). In 2005-06, the scope of payment by results will be increasing to cover the whole of elective in-patient care for NHS trusts. PCTs will pay the same national tariff to any trust with which they commission, and an allocation for the MFF for elective care will be made to providers directly from the centre. 2005-06 will be the first year in which such allocations will be made. The Department provided details of the 2005-06 MFF allocations to the NHS on 21 February 2005. There are three reasons why Blackpool, Fylde and Wyre hospital NHS trust (Blackpool) would have a different MFF allocation to Lancashire teaching hospitals NHS trust (Preston): differences in their volume of elective activity (more activity requires more funding); differences in the case mix of that activity (more complex activity requires more funding), and differences in the MFF itself (trusts located in more expensive areas require more funding). The 2005-06 MFF for Lancashire teaching is 1.1 per cent., higher than for Blackpool largely because the MFF allows for higher general wage pressures in Preston.

Date

24 March 2005

Reference

432 c1064W;432 c1065W; 223403

House

House of Commons

Dept of Health

To ask the Secretary of State for Health, if he will place in the Library a copy of the research carried out for his Department by Warwick University in connection with its calculations of the Market Forces Factor Adjustment as it affects hospitals in Lancashire and Greater Manchester.

Asked by

Michael Jack (Conservative)

Answering body

Department of Health

Type

Written questions

Status

Answered

Date

24 March 2005

Reference

432 c1064W;432 c1064-5W; 223402

House

House of Commons

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