Published: 19/08/2004, Volume II4, No. 5919 Page 21

You claim that we have moved from our published timetable for payment by results to cover some 60 per cent of all services from 1 April 2005 (news, page 5, 29 July). This is incorrect. Payment by results will, as planned, be applied to more than half of all services from next April.

The phasing by tranches of 25 per cent to which you refer does not apply to the proportion of services covered by payment by results. It refers to the steps that need to be taken by NHS organisations that have costs over the tariff and that therefore need to reduce their costs in a phased manner.

Richard Douglas Director of finance Department of Health