Enhanced Tariff Option

NHS England has reported that 211 out of 241 NHS trusts will move to the tariff this year. This accounts for 88 per cent of NHS providers, all of which will receive a share of the £500 million funding from December's Autumn Statement.

The Enhanced Tariff Option (ETO) will aim to reduce funding pressures and ensure the orderly management of the overall NHS budget within the cash limit set by Parliament.

While the announcement has been welcomed by many, Rob Webster, the Chief Executive of the NHS Confederation, has reservations. He said: "The Enhanced Tariff Option has not been agreed by everyone. Urgent work is needed to resolve the delay in agreeing prices for 2015/16 with those providers on the Default Tariff Rollover. Hopefully, the developments announced today can accelerate this process."

The government announcement claims that the providers who have yet to opt in for the new tariff will remain on the Default Tariff Rollover, which was established for 2014/15.

Webster concluded that: "The most important message now is that providers and commissioners need to work together, based on a shared purpose, to ensure sustainability and invest in new models of care needed in the future."

https://www.gov.uk/government/news/most-nhs-providers-opt-for-enhanced-tariff-for-201516

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This story was first published in digitalhealth.net

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