NERA’s Role in Contract Support

The Situation

Across the UK National Health Service (NHS), organisations are considering new ways of contracting for services that go beyond the standard model, which is predicated on activity-based pricing. However, as organisations move towards new forms of contracting, linking incentives with outcomes remains a challenge. NERA was asked by a health care commissioner to help develop an understanding of how alternative contracting models may work for a number of organisations.

NERA's Role

NERA supported the development of alternative contracting models that could be used in place of standard “Payment by Results” (PbR) contracts. NERA’s analysis included an examination of alternative structures for incentives that would support both commissioner and provider to effectively manage their clinical and financial risk.

The Result

NERA’s work helped the organisations involved to understand the options faced and how these may work in the future. These models are now being considered as alternatives for future contracting.