Huddersfield’s health and hospital bosses have reached a stalemate in a dispute over a multi-million pound contract.
The Examiner has learned of a row over what Huddersfield Royal Infirmary and Calderdale Royal are paid by Greater Huddersfield Clinical Commissioning Group (CCG).
In 2014/15 the deal for the main clinical contract was worth £123m to Calderdale and Huddersfield NHS Foundation Trust.
But GPs and NHS officials who run the CCG have said they didn’t feel they were getting value for money.
The contract was a fixed price deal and did not reflect the amount of work done by the hospital.
But activity levels were still monitored and a report to the CCG said they had calculated the equivalent of a £3.8m “under-trade”.
The contract covers the majority of every day hospital services such as A&E, operations and maternity services.
At the March meeting of the CCG, finance chief, Julies Lawreniuk said she was hoping to take a £3.4m “slug” out of their planned spend with the trust to reflect the “activity they didn’t deliver in 2014/15”.
The two groups were supposed to agree a deal for the start of this financial year.
But following months of negotiations over the new system they are in deadlock and have implemented temporary payment terms.
They have now been forced to call in independent arbitration.
Calderdale and Huddersfield NHS Foundation Trust said mediators from London based Centre for Effective Dispute Resolution would be overseeing the process.
Figures from last year showed activity levels at the two NHS hospitals were significantly below expectations.
Meanwhile, NHS work performed at private hospitals surged.
In 2014/15 the CCG had to pay around £1m more than expected to BMI hospital at Birkby, Huddersfield and around £400,000 extra to Spire at Elland after NHS patients elected to use the private firms for NHS procedures – a option allowed by the NHS Constitution.
The CCG now wants to implement a contract based on the amount of work done by the trust.