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Funding of mental health services: Do available data support episodic payment?

Author

Listed:
  • Rowena Jacobs

    (Centre for Health Economics, University of York, York, UK.)

  • Martin Chalkley

    (Centre for Health Economics, University of York, York, UK.)

  • María José Aragón

    (Centre for Health Economics, University of York, York, UK.)

  • Jan R. Böhnke

    (HYMS and Department of Health Sciences, University of York, York, UK)

  • Mike Clark

    (PSSRU, London School of Economics, London, UK)

  • Valerie Moran

    (Department of Health Services Research and Policy, London School of Hygiene and Tropical Medicine, London, UK)

  • Simon Gilbody

    (2HYMS and Department of Health Sciences, University of York, York, UK)

Abstract

The primary method of funding NHS mental health services in England has been block contracts between commissioners and providers, with negotiations based on historical expenditure. There has been an intention to change the funding method to make it similar to that used in acute hospitals (called the National Tariff Payment System or NTPS, formerly known as Payment by Results (PbR)) where fixed prices are paid for each completed treatment episode. Within the mental health context this funding approach is known as episodic payment. Patients are categorised into groups with similar levels of need, called clusters. The mental health clustering tool (MHCT) provides a guide for assignment of patients to clusters. Fixed prices could then be set for each cluster and providers would be paid for the services they deliver within each cluster based on these fixed prices, although the emphasis to date has been on local pricing. For this episodic payment system to work, the MHCT needs to assign patients to clusters, such that they are homogenous in terms of 1) patient need, and 2) resource use.

Suggested Citation

  • Rowena Jacobs & Martin Chalkley & María José Aragón & Jan R. Böhnke & Mike Clark & Valerie Moran & Simon Gilbody, 2016. "Funding of mental health services: Do available data support episodic payment?," Working Papers 137cherp, Centre for Health Economics, University of York.
    • Handle: RePEc:chy:respap:137cherp
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    References listed on IDEAS

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