Pathway Currencies and Tariffs

The model used to develop the price of care was a Time Driven Activity Based Cost model based on granular elements of care. These elements of care could then combined into bundles or 'Currencies'. The Currency describe the generic package of care delivered and each Currency has two prices known as 'Tariffs':

  • A Primary Tariff – the cost of delivering that care on its own
  • An Additional Tariff – the marginal cost of delivering that care alongside another, more expensive Currency.

This approach was specifically endorsed by Price Waterhouse Coopers (PWC) in an overarching review of Payment by Results (PbR) development sites in 2008 as recommended best practice in designing tariffs. It has since been recommended as an approach to future PbR development by Monitor.