Moving to HRG4+ phase 3 currency design 1. Existing policy 2. Proposed change We currently use HRG4 currency design to set We propose to implement phase 3 of the HRG4+ currency national prices. This currency design relies on cost design. Further information on the proposed change from and activity data from 2011/12. HRG4 to HRG4+ can be found . HRG4 currency does not reflect the latest clinical HRG4+ phase 3 takes existing HRGs and splits them up to practice in terms of the mix of care that is delivered allow more levels of complexity. shows an example of this. to patients and recent innovations in the way that HRG4+ phase 3 also introduces a complexity and comorbidity services are delivered. score to allocate the appropriate HRG to the relative complexity of treating the patient. 3. Rationale 4. What does this mean? HRG4+ phase 3 provides a more granular Moving to HRG4+ phase 3 would change the structure of currency design. This means better able to national prices, chapters and subchapters. it’s identify and pay for the resources used to treat It is important that commissioners and providers consider the patients with different levels of complexity. effect that this move would have on them. We welcome your Moving to HRG4+ phase 3 would allow us to use feedback on these effects as part of this consultation. the latest available data, from 2014/15, to set HRG4+ phase 3 would mean that providers are more prices. accurately paid for the care they provide. The extra detail We have evidence to show that data variation within this currency design would help providers to plan more between providers for HRG4+ phase 3 is lower effectively with commissioners to deliver better care for than for HRG4 or HRG4+ phase 2. This suggests patients. that reference costs are better defined within HRG4+ phase 3. We have published a supporting document (Annex D) with our evidence. Introducing HRG4+phase 3 would be a big change. Retaining this design for 2018/19 would give certainty and stability to the service.
Moving to HRG4+ phase 3 currency design 1. Existing policy We currently use HRG4 currency design to set national prices. This currency design relies on cost and activity data from 2011/12. HRG4 currency does not reflect the latest clinical practice in terms of the mix of care that is delivered to patients and recent innovations in the way that services are delivered. 2. Proposed change We propose to implement phase 3 of the HRG4+ currency design. Further information on the proposed change from HRG4 to HRG4+ can be found . HRG4+ phase 3 takes existing HRGs and splits them up to allow more levels of complexity. shows an example of this. HRG4+ phase 3 also introduces a complexity and comorbidity score to allocate the appropriate HRG to the relative complexity of treating the patient. 3. Rationale HRG4+ phase 3 provides a more granular currency design. This means it’s better able to identify and pay for the resources used to treat patients with different levels of complexity. Moving to HRG4+ phase 3 would allow us to use the latest available data, from 2014/15, to set prices. We have evidence to show that data variation between providers for HRG4+ phase 3 is lower than for HRG4 or HRG4+ phase 2. This suggests that reference costs are better defined within HRG4+ phase 3. We have published a supporting document (Annex D) with our evidence. Introducing HRG4+phase 3 would be a big change. Retaining this design for 2018/19 would give certainty and stability to the service. 4. What does this mean? Moving to HRG4+ phase 3 would change the structure of national prices, chapters and subchapters. It is important that commissioners and providers consider the effect that this move would have on them. We welcome your feedback on these effects as part of this consultation. HRG4+ phase 3 would mean that providers are more accurately paid for the care they provide. The extra detail within this currency design would help providers to plan more effectively with commissioners to deliver better care for patients.
Final_tariff_engagement_document_with_cover_word_version_3.docx