Review of the Market Forces Factor Methodology

The objective of this project is to review the methodology underpinning the setting of the Market Forces Factor (MFF) to assess whether it is appropriate or should be redesigned. There are around 240 NHS Trusts and Foundation Trusts (FTs) and the MFF captures non-controllable cost differences between these trusts. The output required from the review is a recommendation for the methodology to be used in future years that is: • fit-for-purpose; • efficient to operate; and • as simple and transparent as possible. The recommendation may include up to three options so that NHS Improvement and NHS England can determine the most appropriate. The quality of the principal option is more important than quantity of options supplied.