Good performers pay less, poor performers will pay more. The private and voluntary healthcare sector is to get a 15% overall cut in regulatory fees, the Healthcare Commission announced.
For the 2007/2008 financial year, the Commission has reduced fees for first time, saying this reflects greater efficiency in regulation and better targeting of inspection.
It also says this is the first step in a long-term drive to reduce regulatory costs. Over the next 12 months, the Commission is piloting new ways of calculating fees which, if successful, could see further reductions.
The Commission is reducing the total number of independent providers it inspects. It inspected 80% of providers in 2006/2007, compared to 100% in 2005/2006 and will continue to make further significant reductions this year. All providers will still have to submit an annual self-assessment.
Most providers will pay a basic charge that includes a routine inspection if needed. The Commission will charge a daily rate for any additional inspection, so organisations needing further inspections pay more because of poor performance.
To further reduce the cost of regulation in future years, the Commission is now piloting two initiatives with private doctors and beauty salons. If successful, these will be rolled out to other provider groups.
The first charges private doctors an annual fee based on the assumption that no inspection is needed. As part of the pilot, the provider group is subject to a daily charge for any inspections needed.
The second pilot calculates fees at a corporate level rather than per location for certain types of private doctors and beauty salons. This reduces fees for some organisations that operate out of multiple premises to just ?100 for up to four secondary locations. The Commission previously charged full fees for each location of a service.
The Commission?s approach for 2007/2008 means the sector overall will pay ?7.2 million in fees, saving ?1.2 million.
To reduce the need for annual inspections, the Commission asks providers to submit information that demonstrates they are complying with regulation.