The Department of Health has agreed to bail out three children's hospitals to the tune of £10m after the trusts claimed that the specialist payment by results tariff was 'inaccurate'.

The Department of Health has agreed to bail out three children's hospitals to the tune of£10m after the trusts claimed that the specialist payment by results tariff was 'inaccurate'.

The DoH has agreed to 'top-up' the specialist tariff for three children's trusts: Royal Liverpool Children's trust, Great Ormond Street Hospital for Children trust, and Sheffield Children's trust.

They have been given£10m between them to 'offset' the losses they have incurred under payment by results.

The Royal Liverpool will receive£4.9m, Great Ormond Street£3.4m and Sheffield£900,000.

Health minister Lord Warner said the government had been working with the trusts to reach agreement on 'local support and extra contributions' to their income under tariff.

In April the chief executives and chairs of the three trusts and also Birmingham Children's Hospital trust, wrote to Lord Warner and acting NHS chief executive Sir Ian Carruthers stating that they were 'extremely concerned that vital specialist capacity will be lost'.

However, Birmingham Children's Hospital trust will not benefit from additional funding. According to DoH head of payment by results Liz Eccles the DoH decided the trust did not need any additional funding.

The government is to decide whether the additional money is needed for 2007-08, when it will also make a decision on whether specialist orthopaedic trusts should receive a similar bail-out after they claimed that PbR was affecting their financial viability.