The future use of
Independent Sector Treatment Centres (ISTCs) in the NHS, will be
fairer and on the same terms as other providers of NHS services,
Health Minister Mike O’Brien announced today.
Under the changes set out today, each contract will be reviewed
on a case-by-case basis and new services will be commissioned by
the local Primary Care Trust where they are designed to meet local
needs, provide value for money and benefit patients in that
community. Primary Care Trusts are already responsible for
procuring a broad range of services from NHS and independent
sector providers on behalf of local patients.
In future, contracts to provide services from these treatment
centres will also be paid under the same pricing arrangements as
NHS providers. Services will be delivered under the terms and
conditions of the standard NHS national contract for acute
hospital services – the same contract used by NHS providers.
Where the NHS identifies an ongoing need for services, there will
be a competitive tendering process and bidders, including those
from the independent sector, will be invited to deliver services
at NHS tariff prices.
Health Minister, Mike O’Brien said:
“We need providers of NHS services, to deliver safe and high
quality care for patients and value for money, but there should
also be consistency in pricing and contracts. In the past the
Independent Sector have sometimes been guaranteed payments. In the
future it is intended that contracts will operate at NHS tariff
prices using the standard NHS contract for hospital services.
“Where independent sector providers offer value for money,
innovation and high quality patient care, they have a role to play
within the NHS. Independent Sector Treatment Centres have helped
patients by increasing choice and capacity, and reducing waiting times.
“Greater local control and day-to-day management will ensure
these services are better integrated in to the local health system
and reflect local needs.”
The changes will take effect in the second wave of ISTC
contracts, the first of which will be advertised in August 2009.
The first wave of contracts are due to end from 2010. Both
independent sector and NHS providers will be eligible to bid for
the new contracts, which will be commissioned locally by the NHS,
rather than by the Department of Health.
Independent Sector Treatment Centres (ISTCs) have helped improve
health services for patients, reduce waiting times and improve
patient choice in the NHS. More than 1.7 million operations,
diagnostic assessments and primary care consultations have been
provided to NHS patients at ISTCs. ISTCs have pioneered innovative
approaches that have delivered improvements for patients in access
to services and quality of care, such as fixed site treatment
centres typically specialising in a range of elective procedures
and mobile diagnostic services to NHS patients in locations close
to their home.
Notes to Editors
1. Independent Sector Treatment Centres (ISTCs) are dedicated
units that offers safe, fast, pre-booked day and short-stay
surgery and diagnostic procedures on behalf of the NHS. They offer
a wide range of elective procedures including general surgery,
orthopaedics, ophthalmology and ear, nose and throat. They also
deliver diagnostic assessments and primary care including a minor
injuries walk in service.
2. The ISTC programme was procured in two stages known as Wave
One and Phase Two. Wave One was announced in December 2002 with
Phase Two following in October 2004. Wave One of the ISTC
Programme provides elective procedures, outpatients and diagnostic
services, primary care.
3. The first ISTC commenced operations in October 2003, with the
final Wave One ISTC commencing services in Nottingham in August
2008. There are currently 25 fixed site Wave One ISTCs and 6
walk-in centres with a commuter focus.
4. Wave One ISTC contracts are due to end from 2010. Each
contract will be reviewed on a case-by-case basis and new services
will be commissioned by the local PCT where they meet local needs,
provide value for money and benefit patients. Where the NHS
identifies an ongoing need for services, there will be a
competitive procurement process, including an advertisement in the
Official Journal of the European Union (OJEU).
5. Bidders will be invited to deliver services at NHS tariff
prices, under Payment by Results (PbR), for the services they
provide. Services will be delivered under the terms and conditions
of the standard NHS national contract for hospital services. This
is the same contract used by NHS providers. Payment by Results
(PbR) provides a transparent system where payment is linked to
activity and adjusted for casemix to ensure a fair and consistent
basis for funding.
6. The first contract to expire is the Eccleshill NHS Treatment
Centre in Bradford. In August NHS Bradford and Airedale will place
an OJEU notice seeking offers from potential bidders inviting bids
for a range of healthcare services. A provider will be appointed
in February 2010.
7. Consideration of Phase Two contracts has not begun as these do
not expire until 2011 - 2017.
8. In the latest patient satisfaction survey, 96% of ISTC
patients said their care was “excellent” or “very good”.
For more information, please contact the Department of Health
press office on: 020 7210 5221.
Contacts:
Department of Health
Phone: 020 7210 5221
NDS.DH@coi.gsi.gov.uk