Under the Payment by Results system, introduced in April 2005, hospitalsare paid a set price specific to each procedure they carry out.Previously, they received a fixed amount regardless of the work theydid. The system has resulted in hospitals with a wider range ofprocedures receiving more money and those with a smaller range - such asspecialist children's hospitals - losing out.
To offset this, the Department of Health last week announced additionalfunds for children's hospitals. "Most NHS trusts and foundation trustshave a mix of routine and complex cases, which results in losses andgains being offset," said Lord Warner, the health minister. "However,for specialist children's hospitals, which have a smaller range ofservices, this does not in all cases work in practice."
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