The National Health Service (Licensing and Pricing) Regulations 2013

Consultation on the proposed national tariff

5.—(1) The percentage prescribed for the purposes of section 120(2)(a) of the Act (responses to consultation) (meaning of “objection percentage” for clinical commissioning groups) is 51 per cent.

(2) The percentage prescribed for the purposes of section 120(2)(b) of the Act (“objection percentage” for relevant providers(1)) is 51 per cent.

(3) The percentage prescribed for the purposes of section 120(2)(c) of the Act (“share of supply percentage”) is 51 per cent.

(4) A relevant provider’s share of supply, for the purposes of section 120(2)(c) of the Act, is to be calculated in accordance with paragraphs (5) to (8).

(5) A relevant provider’s share of supply is the proportion (expressed as a percentage) of total tariff income for the relevant year which is—

(a) received by that provider, and

(b) attributable to services provided by that provider—

(i) during that financial year, or

(ii) during that financial year and a following financial year where payment for the provision of the services becomes payable at the time that such provision first commences.

(6) For the purposes of this regulation—

“total tariff income” means the total amount of income received by relevant providers for the delivery of health care services by them for the purposes of the NHS for which there is a national price specified in the national tariff, less—

(a)

any income which is attributable to such of the variations to national prices specified in the national tariff under section 116(4)(a) of the Act (the national tariff) as Monitor considers are intended to reflect unavoidable costs of a person who provides health care services for the purposes of the NHS relative to each other such person; and

(b)

any income which is attributable to the difference in the price for a service determined in accordance with the national tariff and the price payable for that service as modified under section 124 or section 125 of the Act (local modification of prices: agreements and applications).

(7) In paragraph (6)—

(a) the reference to the “national tariff” is a reference to the version of the national tariff which had effect for the time when payment for the service became due; and

(b) “unavoidable costs” means costs (including elements of land, building and staff costs) that Monitor considers a person who provides health care services for the purposes of the NHS is unable to influence significantly.

(8) Until, in respect of a financial year, income from the provision of health care services for the purposes of the NHS which are specified in the national tariff (whether published by the Secretary of State under section 2 of the National Health Service Act 2006(2), or by Monitor under section 116(1) of the Act) is derived only in accordance with a national tariff so published by Monitor—

(a) references to the national tariff in paragraph (6) (except sub-paragraph (b)) and paragraph (7)(a) are to be read as including a reference to the national tariff published by the Secretary of State;

(b) references in paragraph (6) to national prices are to be read as including a reference to prices specified in the national tariff published by the Secretary of State; and

(c) the reference in paragraph (6)(a) to “under section 116(4)(a) of the Act (the national tariff)” is omitted insofar as the variations concerned are specified in the national tariff published by the Secretary of State.

(1)

As to “relevant provider” see regulation 6.

(2)

2006 c. 41.