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Tariff and Funding update September 2014 National Association of Medical Education Mangers

Tariff and Funding update September 2014 National Association of Medical Education Mangers. Jenni Field Head of Finance Strategy Health Education England. Content. Historic Funding Arrangements Introduction of “transitional tariffs” Future Tariff design and costing work.

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Tariff and Funding update September 2014 National Association of Medical Education Mangers

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  1. Tariff and Funding update September 2014National Association of Medical Education Mangers Jenni Field Head of Finance Strategy Health Education England

  2. Content Historic Funding Arrangements Introduction of “transitional tariffs” Future Tariff design and costing work

  3. The investment in education and training

  4. The Historic Funding Position… Funding based on local agreements Rarely linked to outcomes or quality Inequities in funding across different organisations and within organisations (across different professions)

  5. The case for tariffs ‘The Government is committed to the principle of tariffs for education and training as the foundation to a transparent funding regime … ‘

  6. The case for tariffs - Commissioning on quality, not cost- More certainty for trusts around income- Arrangements are more transparent- Fairer distribution of funding across the system- Easier and quicker to commission clinical placements

  7. Introduction of Tariffs Transitional tariffs: • Non-medical placements and undergrad medical placements (April 2013) • Postgraduate medical tariffs (April 2014) • Based on the outputs of the MPET Review in 2008

  8. Transitional Tariffs The gains and losses phase in over time Annual Losses capped at £2m or 0.25% of turnover The transition model runs for 13 years However the vast majority of the transition is complete by 2017/18

  9. Tariff Rates The tariffs for 14/15 are as follows: • Non-medical: £3,175 plus MFF • Medical undergraduate: £34,623 plus MFF • Medical postgraduate: £12,400 plus MFF, plus 50% of the basic salary costs *MFF = Market Forces Factor

  10. Summary of Funding Changes

  11. National Tariff Document National Tariff document published 6th March 2014 http://hee.nhs.uk/work-programmes/resources/tariff-guidance-and-implementation/ Tariff queries to: hee.tariffs@nhs.net Consultation will take place ahead of publishing revised guidance for 2015/16

  12. Future Tariff Design • There is a need for robust and up to date costs • Future Tariffs will be set based on the outcome of the Cost Collections from NHS Trusts • The cost collections are a major undertaking for Trusts, the majority of whom have never submitted costs in this way.

  13. Cost Collections • Initial mid-year cost collection January 2014 • 233 submissions out of 236 Trusts in January • Confidence in the initial data submitted is low • However feedback is that Trusts are now better placed for the full year collection • Full year cost collection August 2014 • All Trusts submitted in line with the deadline • Data Analysis currently underway • Results to be published November 2014

  14. Role of Medical Education Managers • Engagement with the process • Recording activity • Identifying activity (and reviewing how activity is recorded for future collections) • Contributing knowledge and information to feed the assumptions required in the exercise • Participating in cross function project groups within trusts to identify relevant training and education costs/ activity. • Embedding the process

  15. How the data will be used • The data will underpin work to create tariffs • HEE responsible for Currency Development • DH responsible for pricing • Currency Development Group • Review the proposed approach for creating ERGs • Review the principles for ERG design • Comment on draft groupings, especially with regard to what is professionally meaningful for education and training groupings. • Receive our data analysis

  16. Development of Currencies(ERGs: Education Resource Groups) • Statistical analysis of data will underpin currency design • Establish a multi-professional group to develop proposals • Wider stakeholder consultation • Possible design principles • Iso-resource • Educationally and professionally meaningful • Minimum coverage • Quality incentives

  17. Questions? Contact Details: Tariffs: hee.tariffs@nhs.net Costing Exercise: DH and HEE joint helpline 0113 254 5805 educationandtraining@dh.gsi.gov.uk http://hee.nhs.uk/work-programmes/resources/

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