This document is intended for all organisations involved in commissioning or delivering new care models. It will be of particular interest to finance, contracting and commissioning staff seeking detailed guidance on developing new financial mechanisms to support service reform.
You can find a shorter introduction and animation in our collection of local payment examples.
Note on use of this document
Local providers and commissioners looking to implement the new payment approaches set out in this document while they are in their current development stage must follow the rules and principles for locally determined prices set out in Section 7.1 of the National Tariff Payment System.
This includes a requirement to send to Monitor and publish any locally agreed payment arrangements that lead to changes to national prices set by Monitor.
Commissioners should also ensure that they follow the framework set out in the National Health Service (Procurement, Patient Choice and Competition) (No 2) Regulations 2013. Guidance by Monitor on these regulations is available