§ Mr. Dobsonasked the Secretary of State for Social Services if he will set out the reasons why the average pay-bed charge increased by 20 per cent. since 1979 after allowing for movement in National Health Service pay and prices; and if he will explain the basis for the calculation.
§ Mr. Kenneth Clarke[pursuant to his reply, 25 April 1984, c. 571]: Pay bed charges are based on the average cost per patient-day derived from the latest and best available cost returns for those hospitals with private patients adjusted to reflect expected cost movements to the year of application. The reasons for the increase include higher than average cost increases in acute hospitals, where most pay beds are to be found; a revision of the basis for calculating capital costs; and the introduction of a weighting to reflect the differences in bed use by private patients.
In 1984–85 we have also refined the method of calculating these charges. We have included an amount for the estimated cost of handling blood products and we have further revised the capital and administration elements.