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Evaluation of the reimbursement system for NHS-funded care

Published on: 23 February 2012

Evaluation of the reimbursement system for NHS-funded care is an in-depth, independent and extensive evaluation of the reimbursement system in the NHS in England. It is the most comprehensive analysis of pricing in the NHS that’s ever been done. The report highlights the vital importance of good quality information which accurately identifies the true costs of providing care.

On 5 July 2012 we published a summary of stakeholder responses to the report.

Download - Evaluation of the reimbursement system for NHS-funded care - (1.12 MB)


Download - Summary of stakeholder responses to the Evaluation of the reimbursement system for NHS-funded care report (870.47 KB)


Under the Health and Social Care Act (2012), Monitor takes on responsibility for pricing, working closely with NHS England (previously called the NHS Commissioning Board). It is important for Monitor and NHS England to understand the strengths and weaknesses of the current reimbursement systems in the NHS and how these compare to best practice in other healthcare systems around the world and in other sectors.

Monitor appointed PwC to undertake an in-depth, independent and extensive evaluation of the reimbursement system in the NHS in England. This is the most comprehensive analysis of pricing in the NHS that's ever been done.

PwC's findings have been published in a report and are based on empirical data and expert input from a number of sources, including NHS stakeholders, leading academics and pricing specialists. This report is the first stage in establishing the evidence for Monitor to use to develop new ways of using pricing to deliver benefits for patients. Whilst this report does not make specific recommendations for the future, it forms the beginnings of an evidence base upon which we will develop our future strategy for pricing.

The report highlights the vital importance of good quality information which accurately identifies the true costs of providing care.

As shown in the diagram below, PwC's report covers the current system and includes an analysis of the reimbursement of acute care, mental health and community services through Payment by Results, local tariffs and block contracts.

Coverage of the “Evaluation” report: focus on the current system

Summary of stakeholder responses to the Evaluation of the reimbursement system for NHS-funded care report

Monitor asked for stakeholder comment on the Evaluation report. Thank you to everyone who responded, the quality of stakeholder feedback was strong and very helpful.

We have subsequently published a summary of responses document which provides a summary of stakeholder responses and a short response from Monitor on each of the key themes that arose.

If you would like to make any further comments once you have read the summary document, please email us at pricing@monitor.gov.uk.

You can sign up to receive emails when we publish information on pricing, and on our proposed new role in general, here on our website.


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