Foundation hospitals accused of fiddles

The Government's flagship health reform has been put on hold amid claims some foundation hospitals are "fiddling the system".

Ministers had hoped to introduce a regime where the independently managed hospitals would be paid by results.

But they have revised their plans after it emerged some NHS trusts are deliberately inflating the amount of work they do to gain extra funds.

The prac t ice was so widespread that ministers have been warned the NHS faced financial turmoil if they continued with the scheme.

It was originally envisaged that 70 per cent of a hospital's income would depend on results. But health minister John Hutton will now cap this at 30 per cent.

His intervention follows a report by the Health Service Journal which found trusts manipulating figures for A&E admissions.

While attendances across the NHS increased by three to four per cent, foundation trusts increased short-stay admissions by 20 per cent. Trusts are paid ?1,200 for a short-stay admission - much more than for a simple visit.

Mr Hutton said "payment by results remains central to implementing patient choice".