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May 2022 – Provider Threshold announcement FY 2022-2023

Date: 24 May 2022

Research in the NHS is vital to improving services, care and outcomes for patients. As part of the UK’s Clinical Research Recovery, Resilience and Growth programme, which aims to deliver the Government’s research vision, NHS England and NHS Improvement (NHSE/I) are committed to supporting and enabling the NHS to place research at the heart of its work.

Funding Excess Treatment Costs (ETCs) is one of the ways that NHSE/I, aided by the National Institute for Health and Care Research (NIHR), supports non-commercial research in the NHS.

The national CCG ETC payment system, implemented in October 2018, applied a contribution threshold to NHS secondary care sites, which sites had to surpass before any ETC payments were made. This base annual ETC threshold was typically set at 0.01% of operating budgets. After discussions with partners, a decision has been made to significantly reduce the base ETC contribution threshold from 0.01% to 0.001%, effective from 01 April 2022.

The decision to reset thresholds will significantly reduce the average threshold levels for secondary care providers from an average of £40,000 to £4,000 per annum. This will not only create additional funding to sites incurring CCG ETCs, it will provide funding earlier in the financial year and create stability and assurances for sites during the budgeting stages.

Overall it is expected that this reduction will provide additional funding of £4m per annum to secondary care providers with an additional 120 NHS sites receiving payments.

The process for receiving CCG ETC payments through the national system remains unchanged.

A list of provider thresholds will be made available here as soon as possible.

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