Source · Select Committees · Public Accounts Committee
Recommendation 15
15
Accepted
ICBs currently fund hospices largely through grants and block contracts, which do not provide clarity...
Recommendation
ICBs currently fund hospices largely through grants and block contracts, which do not provide clarity over what is being purchased.28 The Department and NHS England acknowledged that there must be a move away from funding hospices in this way towards a strategic commissioning approach. However, they emphasised that transitioning to activity or outcome-based commissioning is a complicated process that would require a period to build the systems and mechanisms to ensure long-term sustainability and avoidance of the current position in the future.29
Government response summary AI-generated
The government accepts the recommendation to move away from grants and block contracts towards a strategic commissioning approach for hospices. It plans to address this through the Palliative Care and End-of-Life Care Modern Service Framework (MSF), due for publication in Autumn 2026, which aims to strengthen commissioning and improve sustainability.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Accepted
HM Government · verbatim extract
Accepted
1.5 The government agrees with Committee’s recommendation. Target implementation date: Autumn 2026 1.6 ICBs should apply this to all providers, not just hospices, as per the Strategic Commissioning Framework. 1.7 The planned publication of Autumn 2026 of Palliative Care and End-of-Life Care Modern Service Framework (MSF) provides an important opportunity to further strengthen commissioning and improve sustainability of palliative care and end‑of‑life care through consideration of contracting and commissioning arrangements. The department recognises that there is currently a mix of contracting models in the hospice sector. By supporting ICBs to commission strategically, we can move away from grant and block contract models. In the long term, this will aid sustainability and help hospices’ ability to plan ahead.
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