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Wednesday 17th January 2018

Monitor launches consultation on the interpretation and application of the Private Patient Income Cap

17th June 2008

Monitor, the Independent Regulator of NHS Foundation Trusts, is seeking views on the rules that NHS foundation trusts should follow in relation to the legal 'cap' on the income they may earn from charges for services to patients.

This follows the decision taken by Monitor's board at its January 2008 meeting to open the subject to public consultation.
The legislation establishing NHS foundation trusts makes specific provision to limit the proportion of income an NHS foundation trust can earn from charges for services to patients - the Private Patient Income Cap.

Monitor is responsible for operating reporting and compliance regimes for NHS foundation trusts. This includes making rules for NHS foundation trusts to follow. The approach that Monitor has taken to the application of the private patient income cap to date has been set out in the NHS Foundation Trust Financial Reporting Manual (FReM).

In light of a recent challenge to Monitor's interpretation of the private patient income cap, the complexity of the issues involved and the scope for different interpretations and approaches, Monitor has launched a formal consultation to allow for an informed discussion on the possible options and expression by interested parties of their views.

Monitor's Board will use the responses to this consultation to inform its decision on the rules to apply the private patient income cap.

The consultation will close on Tuesday 9 September 2008.

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