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The aim of the financial system 'Payment by Results' is to provide a transparent, rules based system for paying trusts. The system pays for activity

The aim of the financial system 'Payment by Results' is to provide a transparent, rules based system for paying trusts. The system pays for activity not results e.g. for number of operations done not lives saved. The aim is to reward efficiency, support patient choice and diversity and encourage activity for sustainable waiting time reductions. Payment will be linked to activity and adjusted for casemix. The central idea is that the NHS will be a fixed price for a particular operation of treatment wherever the care is provided (i.e same price for all hospitals) This system aims to ensure a fair and consistent basis for hospital funding rather than being reliant principally on historic budgets and the negotiating skills of individual managers.

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