§ Mr. ViggersTo ask the Secretary of State for Defence if he will state the terms agreed with the Department of Health on which his Department operates military district hospital units at(a) Derriford, (b) Frimley and (c) Peterborough, indicating the financial payments between departments thereunder and any guarantees of performance by his Department. [75212]
§ Mr. Doug Henderson[holding answer 8 March 1999]The Service Level Agreements (SLA) between my Department and the NHS, which underpin the Ministry of Defence Hospital Units (MDHUs), were reviewed and renegotiated during 1998–99. While the initial agreements with our three original MDHU Trusts (Derriford at Plymouth, Frimley Park, and Peterborough) have been clinically highly successful, the financial and contract arrangements for these partnerships have, however, not been so successful.
The principles of a new SLA were developed to form a revised contract from 1999–2000. Following detailed discussions with the NHS at local, regional and national levels during 1976 and 1998, contracts based on these principles are currently being negotiated locally, and will be in place for 1999–2000 at the three original MDHUs and at the new MDHU at Northallerton. The new contract model will also form the basis for all future MOD contract relationships with the NHS for hosting staff or 804W providing treatment and will underpin a new era in understanding and clinical relationship between the MOD and the NHS.
The financial arrangements for the new model will involve a Public Expenditure Survey (PES) transfer from the MOD to the Department of Health to compensate affected Health Authorities for the loss of free provision of MOD staff, and to enable the Defence Secondary Care Agency to negotiate directly with the relevant NHS Trust. The PES transfer will amount to some £3.5 million a year. There will also be direct payments by the MOD to NHS Trusts for Service staff and the treatment of Service patients.
Under the new arrangement, the financial cost and financial risk associated with the absence of military medical or nursing personnel falls on the MOD. In terms of treatment, the host Trust is expected to meet the throughput and waiting times targets set by the MOD, which are included in the contract with provision, as with any NHS purchaser, for appropriate financial adjustment if they are not met.