Independent hospitals agree contract variation with NHSE

The contract between NHS England and independent hospitals will remain in place until at least the end of October but with a phased transition enabling providers to carry out increasing amounts of private patient work, under new terms agreed today.

Some hospitals, mainly in central London, have already been issued termination notices and will exit the contract on 8 September. Contractual arrangements with the remaining hospitals will expire at the end of December.

The landmark deal, which saw virtually all independent sector hospital capacity turned over to the NHS to help support its response to the Covid-19 pandemic, has been rolled over on a monthly basis since 28 June. However, as part of the de-escalation plans announced in May, independent providers have been able to treat limited numbers of private patients.

The contract variation means hospitals will now be guaranteed a specified minimum capacity for privately funded patients. NHSE will continue to cover cash costs but hospitals will commit to a minimum private rebate, which will be deducted from the NHSE reimbursement based on the amount of private care provided. Additional incentives are also in place for providers that exceed the minimum rebate subject to delivering NHSE activity.