HC Deb 07 February 1991 vol 185 c241W
Mr. Blunkett

To ask the Secretary of State for Health what advice has been given to the district health authorities on meeting shortfalls arising from reductions in cross-boundary funding; and if he will make a statement.

Mr. Dorrell

From 1 April 1991, health authorities will be funded to purchase health care for their resident populations rather than funded for their catchment populations. In 1991–92, all district health authorities will be funded to enable them to purchase broadly the same volume of service as is currently being used by their population, whether in their own district or elsewhere.

The old system of allocation often worked to the disadvantage of districts with hospitals which attract patients from outside. Movement of patients across boundaries was reflected only retrospectively and was based on average costs. Now such districts will be paid directly and in full for all services they provide to non residents.