Payment by Results (PbR)
Last Updated: March, 2019

This is a strategy introduced in 2002 to incentivise hospitals to raise income by attracting and treating more patients. At the same time it ensures that  patients who chose  (or who were induced) to seek treatment with a private provider would take the money with them, therefore making NHS hospital budgets less certain.

This is in stark contrast to the private  Independent Sector Treatment Centres  created around the same time who had been given fixed budgets and significant financial support.

To be clear, PbR has nothing to do with the health outcomes for the patients, it is simply a fixed tariff for each treatment based upon the average costs of NHS providers.