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MPs call for financial incentives for health contractors

Public sector health clients should consider changing contracts to give financial incentives for contractors to deliver more efficient services, according to an influential group of MPs.

A National Audit Office report this morning called on foundation, NHS and primary care trusts to take a series of measures to keep down costs.

Performance and Management of Hospital PFI Contracts said: “Driving efficiency savings from PFI contracts would help to contribute to the current reductions in Government spending.”

It added: “Currently there is little incentive for trusts to help contractors reduce their costs, because such savings are not shared. Trusts should seek gain share mechanisms and adopt partnering behaviours to help contractors deliver more efficient services.

“The department should work with the Treasury, which is responsible for PFI policy, to explore ways in which standard PFI contractual terms can be adapted to best encourage partnering and efficiency savings.

“They should consider how to fit such changes into existing contracts as well as new contracts.”