Public Expenditure on Health and Personal Social Services 2008 - Health Committee Contents



  3.1.2  Could the Department provide a list of all Independent Sector Treatment Centres (ISTCs) currently in operation, or with contracts already signed, including (a) name and location (b) company running the ISTC (c) services contracted for, by type and volume (by Healthcare Resource Group if possible) (d) value of contract per year, the period of the contract and whether it is on a "take or pay" basis, (e) the amount paid, and the relevant activity level, on "take or pay" contracts and (f) a comparison with the cost at national tariff prices of providing the same type and volume of services? (Q17)

Answer

  1.  The information requested is shown in Table 17a for agreed wave 1 independent sector treatment centres (ISTCs) and Table 17b for agreed phase 2 ISTCs.

  2.  All wave 1 ISTC contracts are on a "take or pay" basis. All phase 2 contracts include a guaranteed fixed value (GFV) which is a percentage of the total contract value. The GFV is contracted on a "take or pay" basis.

  3.  A range of indicators were considered to ensure that the Department could measure and report on value for money secured. This included as reference points, both NHS tariff and historic prices the NHS had achieved when spot purchasing.

  4.  It is not possible to directly compare the ISTC prices to tariff. To the extent that prices can be compared, the Department estimates that across the full period of wave 1 contracts, the average cost above the NHS equivalent cost of all wave 1 ISTCs is approximately 12.2%. The Department estimates that across the full period of currently signed phase 2 contracts, the average cost below the NHS equivalent cost of all phase 2 ISTCs is 7.3%.

Table 17a

ISTC WAVE 1 CONTRACTUAL INFORMATION (AS AT 31 MAY 2008)


Total contracted procedures broken down by Health Resource Group (HRG) Chapter


Contract
Location Hospital nameProvider name Contract

term

Interim site

commencement

Full service

commencement

Total nominal

contract value

(£ million)

Contract

utilisation

to date

(31/05/08)

Total

contracted

diagnostics

Total

contracted

procedures

General

surgery

Orthopaedics Nervous

system

Ophthalmology ENTThoracic

procedures

Digestive

system

Urology Gynaecology
LP2BradfordEccleshill NHS Treatment Centre Nations Healthcare 58 Months 4/1/200538 86%88,58328,564 4,7034,530- 4071,015- 10,5674,1683,175
LP3BurtonMidlands NHS Treatment Centre Nations Healthcare60 Months 7/10/200678 77%-64,814 6,67311,9086,168 16,4773,590109 5,40511,6312,853
LP4Trent and South Yorkshire Barlborough NHS Treatment CentrePHG 60 Months4/1/2005 9889%- 21,579-21,579 --- ----
LP5DaventryThe Birkdale Clinic Terminated 10/1/2003597% -5,155144 3923193,841 217-242 --
LP7Shepton MalletShepton Mallet NHS Treatment Centre UKSH60 Months 7/15/200511098% -56,2422,000 22,242-12,000 --20,000 --
LP8Greater Manchester Greater Manchester Surgical CentreNetcare Healthcare 60 Months5/19/2005 8663%- 44,8635,78220,667 --14,351 -3,267796 -
LP9PlymouthPeninsula NHS Treatment Centre PHG60 Months 5/3/200559101% -16,512- 16,512-- --- --
GC4East CornwallBodmin NHS Treatment Centre Ramsay51 Months10/1/2005 1/1/20062562% -26,495215 40-7,148 --14,984 1823,926
GC4East LincolnshireBoston NHS Treatment Centre Ramsay59 Months 4/20/2005980% 2,2596,955572 --3,401 --2,392 590-
GC4North East Yorkshire and North Lincolnshire Clifton Park NHS Treatment CentreRamsay 50 Months4/1/20051/25/2006 4285%- 8,6385817,621 --- -436--
GC4Northumberland, Tyne and Wear The Cobalt NHS Treatment CentreRamsay 58 Months5/25/2005 1185%- 9,7062,221- ---- 7,485--
GC4West LincolnshireGainsborough NHS Treatment Centre Ramsay60 Months 4/1/2005677% 2005,647447 996-1,574 --1,464 1,166-
GC4SouthamptonNew Hall NHS Treatment Centre Ramsay60 Months 4/1/20054374% -13,737- 13,737-- --- --
GC4North OxfordHorton NHS Treatment Centre Ramsay 65 Months 8/1/20068169% - 15,970 - 15,970 - - - - - - -
GC4Thames Valley (Milton Keynes) Blakelands NHS Treatment CentreRamsay 45 Months 4/1/20057/3/2006 1268% 8,292 260 4,185 - - - - 3,384 321 142
GC4Thames Valley (Reading) Reading NHS Treatment CentreRamsay 60 Months 4/1/2005 1593%- 5,935 28 3,024 - - - - 2,141 271 471
GC5ENottinghamNottingham NHS Treatment Centre at QMC Nations Healthcare 60 Months In Mobilisation208 N/A- 110,683 29,556 10,481 10,634 704 4,452 1,274 40,332 203 13,048
GC5 WCheshire and Merseyside Cheshire and Merseyside NHS Treatment Centre Interhealth 60 Months 6/1/2006112 95%- 24,819 - 24,819 - - - - - - -
GC5 WKidderminsterKidderminster NHS Treatment Centre Interhealth 60 Months 2/1/200527 88%- 9,002 10 8,347 645 - - - - - -
GC6MaidstoneMid Kent NHS Treatment Centre PHG 59 Months 11/6/20063898% - 44,742 2,458 4,142 334 90 270 2,276 29,690 112 5,370
GC7North East LondonNorth East London NHS Treatment Centre PHG 60 Months 12/27/200610977% - 56,030 1,580 15,495 - 8,040 9,415 - 5,590 15,910 -
GC8BrightonSussex Orthopaedic NHS Treatment Centre Care UK 60 Months 6/1/200610398% - 26,438 141 26,297 - - - - - - -
GC8HavantHavant NHS Diagnostic Centre Care UK 30 Months 14/01/2008643% 54,117 554 - 554 - - - - - - -
GC8MedwayWill Adams NHS Treatment Centre Care UK 60 Months 10/3/20052749% - 19,770 400 6,235 - - - - 6,065 7,070 -
GC8PortsmouthSt Mary's NHS Treatment Centre Care UK 59 Months 12/19/20056667% 135,117 31,688 6,926 4,010 - 8,160 - - 12,592 - -
GC8WycombeMid & South Buckinghamshire NHS Diagnostic Centre Care UK 60 Months 8/8/20051186% 74,880 - - - - - - - - - -
OC123Ophthalmic Chain Cataract InitiativeNetcare Healthcare 64 Months 1/25/2004 4278% 44,735 - - 44,735
Contractual total £1,469355,156 707,565 64,696 243,784 18,100 106,576 33,310 3,659 166,036 42,419 28,985
ISTC utilisation to date 85%





Source:

Central Contract Management Unit, DH

Footnotes:

1.  The information provided has been based on the most up to date information at May 2008.

2.  The total nominal contract value represents the total real contract value, adjusted for actual inflation to date, and forecast inflation for the remaining contract years.

3.  The contracted activity is indicative only and can vary significantly from actual activity through substitution of higher or lower value procedures across the contract term.

4.  Utilisation represents the value of the activity delivered under each contract as a percentage of the value paid to the provider from contract commencement to 31 May 2008.

5.  Utilisation percentage may change following contract reconciliation which occurs at the end of each contract quarter and each contract year.

6.  The specialties are referenced to HRG Chapter. "General Surgery" includes HRG Chapters E, G, J, K, P, Q and S. HRG information is available at www.ic.nhs.uk/casemix.

7.  This information is expected to be updated on a quarterly basis.

8.  The Department works with the local health economy and providers to ensure optimum utilisation of the contracts. This includes changing the case mix to respond to local need and working with providers and primary care trusts to recover previous under-utilised activity where possible.




Table 17b

ISTC PHASE 2 CONTRACTUAL INFORMATION


Total contracted procedures broken down by Health Resource Group (HRG) Chapter


Contract
Location Hospital nameInterim site commencement Full service commencement Contract end date Total nominal

contract value

(£ million)

Contract

utilisation

to date

(31/05/08)

Total

contracted

diagnostics

Total

contracted

procedures

General

surgery

Nervous

system

Eyes

and

periorbita

Mouth,

head,

neck

and

ears

Digestive

system

Musculoskeletal

system

Urinary

tract

and

male

reproductive

system

Female

reproductive

system

Spinal

surgery

and

primary

spinal

conditions

Renal

dialysis



D01
London Various Sites4/1/2007 4/2/2012108.217% 969,863
D8NNationalVarious Sites 4/7/20084/6/2013 50.374% 48,148 -
D8SNationalVarious Sites 4/7/20083/31/2013 47.091% 42,678 -
D05West MidlandsVarious Sites 6/28/2007Terminated 20.211% 120,099 -
E05Cumbria & Lancashire Various Sites11/1/2007 11/1/2012115.3100% - 51,925 4,085 - 19 3,430 11,347 33,044 - - -
E06Cheshire & Merseyside Various Sites6/1/2007 5/31/201142.878% - 22,339 5,981 39 - 5,189 3,363 1,879 4,517 1,095 275
E15Northumberland, Tyne and Wear BUPA HOSPITAL WASHINGTON 7/2/20076/30/201275.3 43%- 28,057 6,164 - - 1,851 2,359 14,497 - 2,075 1,111
E16Various Main Renal Units Various Sites2/4/2008 3/31/2017110.2100% - 853,615 - - - - - - - - - 853,615
E08Greater Manchester Various SitesIn Mobilisation 1/14/2016201.8N/A 30,611 - - - - 29,379 - 1,232 - -
E09Hampshire & Isle of Wight Various SitesIn Mobilisation 12/1/2015179.8N/A 113,313 8,546 630 6,094 20,802 18,724 23,641 25,095 9,781 -
Contractual total
950.9 1,180,7881,099,860 24,776669 6,11331,272 65,17273,061 30,84412,951 1,386853,615
ISTC utlisation to date (diagnostics)
16%
ISTC utilisation to date (electives)
81%






Source:

Central Contract Management Unit, DH

Footnotes:

1.  All information provided has been based on the most up to date information at the end of May 2008.

2.  The total contract value represents the estimated nominal value of the contract, inclusive of actual inflation to date and forecast inflation for the remaining contract years.

3.  The contracted activity is indicative only and can vary significantly from actual activity through substitution of higher or lower value procedures across the contract term.

4.  Utilisation represents the value of the activity delivered under each contract as a % of the value paid to the provider from contract commencement to 31 May 2008.

5.  The specialties are referenced to HRG Chapter. "General Surgery" includes HRG Chapters E, G, J, K, P, Q and S. HRG information is available at www.ic.nhs.uk/casemix.

6.  The Department works with sponsors and providers to ensure optimum utilisation of the contracts. This includes changing the case mix to respond to local need and working with providers and primary care trusts to recover previous under-utilised activity where possible.







 
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