Our publications

Costing Patient Care: Monitor's approach to costing and cost collection for price setting

Published on: 20 November 2012

Costing Patient Care sets out Monitor's intentions on costing and cost collection for 2013, and the direction of policy for future years, to support our future responsibility for price setting for NHS services. 

In tandem with this, we have also produced draft Approved Costing Guidance which underpins our "costing principles" and describes the way we will collect costing data.

Download - Costing Patient Care: Monitor's approach to costing and cost collection for price setting - (836.67 KB)


Download - Approved Costing Guidance: A draft for stakeholder feedback (1.32 MB)


Download - Summary of Stakeholder Responses to Costing Patient Care and draft Approved Costing Guidance. (380.65 KB)


Understanding the real cost of patient care is an essential element in determining and setting appropriate prices for NHS services. Costing services accurately has the potential to deliver higher quality care to patients and better value for the NHS. Find out more about our role in regulating prices for NHS-funded care.

We have published two new documents:

  • Costing Patient Care sets out our vision, objectives and a series of specific actions in 2013; and
  • Approved Costing Guidance, which contains draft guidance on our collection of patient-level costing data which will take place in 2013 and "costing principles" for costing NHS services.

Costing Patient Care

Costing Patient Care builds on research and reports commissioned by Monitor and sets out our proposed approach to improving the quality of cost data on which prices are based. We propose to improve the methodology for costing, and the collection and assurance of cost data. This includes collecting patient-level costing data from providers in 2013, on a voluntary basis. The document comprises:

  • a description and assessment of how NHS costs are currently collected,
  • our proposed objectives for costing,
  • our long-term vision, and
  • a series of proposed policies and actions for 2013. 

Draft Approved Costing Guidance

Alongside Costing Patient Care, we have published two draft chapters of Monitor's proposed new Approved Costing Guidance:

  • Chapter 1 - Costing Principles contains the costing principles that apply to NHS providers; and
  • Chapter 4 – PLICS collection guidance sets out the guidance for the collection of 2012/13 patient-level costs, what data will be collected, and the fields and other features of the PLICS template.

This draft guidance aims to consolidate and streamline existing guidance into a coherent framework, and should facilitate providers' compliance with the relevant aspects of the provider licence.

The two remaining chapters of the draft guidance will contain HFMA costing standards and Department of Health guidance on reference cost collection, both of which are expected to be published in early 2013.

Thanks for your feed back

Monitor asked for your views on both of these documents. The engagement period closed on 11 December 2012; thank you to everyone who submitted a response.

We published a Summary of Stakeholder Responses to Costing Patient Care and draft Approved Costing Guidance on 21 February 2013.


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