FINANCE: Non-contracted elective spending on private providers is predicted to jump from £300,000 to £1.5m this year at NHS South Birmingham.

The forecast overspend against non-contracted activity has been revised upwards by £400,000 to a forecast overspend of £950,000 after a full review of the first two complete quarters.

The greatest area of growth is within independent sector providers offering elective services under the extended choice network. Spend against these providers last year was £300,000 whereas the projected spend for 2010-11 is £1.5m.

Board papers state: “This is valid NHS work, referred via GPs and paid for at national tariff the same as NHS providers. However, given the magnitude now of the value of activity being provided, [the PCT] will seek to incorporate this on a contractual basis rather than as non contracted.”