Use of innovation payments to encourage the adoption of new medical technologies in the English NHS

C. Sorenson, M.F. Drummond, G. Wilkinson

Research output: Contribution to journalArticlepeer-review


Objectives: This study aimed to investigate the use of innovation payments in the English NHS.
Methods: A structured on-line survey was developed to explore the use of innovation
payments. The survey was disseminated to NHS hospital finance managers.A total of 20
surveys (n=20) were returned.
Results: The majority (70%) of responding hospitals have applied for innovation payments. In
one-third of cases, the payment was for medical devices, followed by drugs (31%), diagnostics
(19%), and other technologies (15%). Innovation payments were generally requested because
the existing HRG tariff did not reflect the cost of the technology. Processes for determining the
payment varied across hospitals, with rates based on supporting evidence of the technology's
benefits most common. While a good concept in principle, only about one-third of respondents
believed innovation payments were effective in meeting their aims in practice.
Conclusions: Improvements to the current approach to innovation payments are needed.
Original languageEnglish
Pages (from-to)168-173
JournalHealth Policy and Technology
Issue number3
Publication statusPublished - Sept 2013


  • Medical technology
  • Reimbursement
  • Financing
  • Innovation

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