Health Act 1999

JurisdictionUK Non-devolved
Citation1999 c. 8


Health Act 1999

1999 CHAPTER 8

An Act to amend the law about the national health service; make provision in relation to arrangements and payments between health service bodies and local authorities with respect to health and health-related functions; confer power to regulate any professions concerned (wholly or partly) with the physical or mental health of individuals; and for connected purposes.

[30th June 1999]

B e It Enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

I The National Health Service

Part I

The National Health Service

Fund-holding practices

Fund-holding practices

S-1 Repeal of law about fund-holding practices.

1 Repeal of law about fund-holding practices.

In the National Health Service and Community Care Act 1990, sections 14 to 17 (which make provision in relation to fund-holding practices) are to cease to have effect.

Local administration

Local administration

S-2 Primary Care Trusts.

2 Primary Care Trusts.

(1) After section 16 of the National Health Service Act 1977 there is inserted—

S-16A

16A Primary Care Trusts.

(1) The Secretary of State may establish bodies to be known as Primary Care Trusts with a view, in particular, to their—

(a) providing or arranging for the provision of services under this Part of this Act,

(b) exercising functions in relation to the provision of general medical services under Part II of this Act, and

(c) providing services in accordance with section 28C arrangements.

(2) Each Primary Care Trust shall be established by an order made by him (referred to in this Act as a PCT order).

(3) A Primary Care Trust shall be established for the area specified in its PCT order and shall exercise its functions in accordance with any prohibitions or restrictions in the order.

(4) If any consultation requirements apply, they must be complied with before a PCT order is made.

(5) In this section, "consultation requirements" means requirements about consultation contained in regulations (and the regulations must impose requirements where a PCT order establishes a Primary Care Trust).

(6) Schedule 5A to this Act (which makes further provision about Primary Care Trusts) shall have effect.

S-16B

16B Exercise of functions by Primary Care Trusts.

(1) This section applies to functions which are exercisable by a Primary Care Trust under or by virtue of this Act (including this section), the National Health Service and Community Care Act 1990 or any prescribed provision of any other Act.

(2) Regulations may provide for any functions to which this section applies to be exercised—

(a) by another Primary Care Trust,

(b) by a Special Health Authority, or

(c) jointly with any one or more of the following: Health Authorities, NHS trusts and other Primary Care Trusts.

(3) Regulations may provide—

(a) for any functions to which this section applies to be exercised, on behalf of the Primary Care Trust by whom they are exercisable, by a committee, sub-committee or officer of the trust,

(b) for any functions which, under this section, are exercisable by a Special Health Authority to be exercised, on behalf of that authority, by a committee, sub-committee or officer of the authority,

(c) for any functions which, under this section, are exercisable by a Primary Care Trust jointly with one or more Health Authorities or other Primary Care Trusts (but not with any NHS trusts) to be exercised, on behalf of the health service bodies in question, by a joint committee or joint sub-committee."

(2) Schedule 1 (which inserts the new Schedule 5A in the 1977 Act) is to have effect.

S-3 Primary Care Trusts: finance.

Before section 98 of the 1977 Act there is inserted—

S-97C

97C Public funding of Primary Care Trusts.

(1) It is the duty of every Health Authority, in respect of each financial year, to pay to each Primary Care Trust whose area falls within their area—

(a) sums equal to the trust's general Part II expenditure, and

(b) sums not exceeding the amount allotted by the authority to the trust for that year towards meeting the trust's main expenditure in that year.

(2) Any payment under subsection (1)(a) above shall be made out of money paid to the Health Authority under subsection (1) of section 97 above and any payment under subsection (1)(b) above shall be made out of money paid to the authority under subsection (3) of that section.

(3) An amount is allotted to a Primary Care Trust for a year under this section when the trust is notified by the Health Authority that the amount is allotted to it for that year; and the Health Authority may make an allotment under this section increasing or reducing an allotment previously so made.

(4) The Secretary of State may give directions to a Primary Care Trust about the payment of sums by the trust to the Health Authority in whose area the area of the trust falls in respect of charges or other sums referable to the valuation or disposal of assets.

(5) Where any part of a sum paid to a Primary Care Trust by a Health Authority under subsection (1) above derives from a sum which was paid to the authority under subsection (1) or (3) of section 97 above subject to a direction (under subsection (6)(a) of that section) that it be applied for a particular purpose, the authority shall direct the trust that the sum paid to the trust shall be applied for the same purpose.

(6) Sums falling to be paid to Primary Care Trusts under this section shall be payable subject to compliance with such conditions as to records, certificates or otherwise as the Secretary of State may determine.

S-97D

97D Financial duties of Primary Care Trusts.

(1) It is the duty of every Primary Care Trust, in respect of each financial year, to perform its functions so as to secure that the expenditure of the trust which is attributable to the performance by the trust of its functions in that year (not including expenditure within subsection (1)(a) of section 97C above) does not exceed the aggregate of—

(a) the amount allotted to it for that year under subsection (1)(b) of that section,

(b) any sums received by it in that year under any provision of this Act (other than sums received by it under that section), and

(c) any sums received by it in that year otherwise than under this Act for the purpose of enabling it to defray any such expenditure.

(2) The Secretary of State may give such directions to a Primary Care Trust as appear to be requisite to secure that the trust complies with the duty imposed on it by subsection (1) above.

(3) Directions under subsection (2) above may be specific in character.

(4) To the extent to which—

(a) any expenditure is defrayed by a Primary Care Trust as trustee or on behalf of a Primary Care Trust by special trustees, or

(b) any sums are received by a Primary Care Trust as trustee or under section 96A above,

that expenditure and, subject to subsection (6) below, those sums shall be disregarded for the purposes of this section.

(5) For the purposes of this section sums which, in the hands of a Primary Care Trust, cease to be trust funds and become applicable by the Primary Care Trust otherwise than as trustee shall be treated, on their becoming so applicable, as having been received by the Primary Care Trust otherwise than as trustee.

(6) Of the sums received by a Primary Care Trust under section 96A above so much only as accrues to the Primary Care Trust after defraying any expenses incurred in obtaining them shall be disregarded under subsection (4) above.

(7) Subject to subsection (4) above, the Secretary of State may by directions determine—

(a) whether specified sums are, or are not, to be treated for the purposes of this section as received under this Act by a specified Primary Care Trust,

(b) whether specified expenditure is, or is not, to be treated for those purposes as expenditure within subsection (1) above of a specified Primary Care Trust, or

(c) the extent to which, and the circumstances in which, sums received by a Primary Care Trust under section 97C above but not yet spent are to be treated for the purposes of this section as part of the expenditure of the Primary Care Trust and to which financial year's expenditure they are to be attributed.

(8) In subsection (7) above, "specified" means of a description specified in the directions."

S-4 Expenditure of Health Authorities and Primary Care Trusts.

4 Expenditure of Health Authorities and Primary Care Trusts.

(1) After Schedule 12 to the 1977 Act there is inserted—

"SCHEDULE 12A

Expenditure of Health Authorities and Primary Care Trusts

Health Authorities: general Part II expenditure

Health Authorities: general Part II expenditure

SCH-12A.1

1.

(1) In section 97 above and this Schedule, general Part II expenditure, in relation to a Health Authority, means expenditure of the authority which—

(a) is attributable to the payment of remuneration to persons providing services in pursuance of Part II of this Act, and

(b) is not excluded by sub-paragraph (2) below.

(2) Expenditure is excluded if it is attributable to—

(a) the reimbursement of expenses of persons providing services in pursuance of Part II which are designated expenses incurred in connection with the provision of the services (or in giving instruction in matters relating to the services),

(b) remuneration referable to the cost of drugs,

(c) remuneration paid to persons providing additional pharmaceutical services (in accordance with directions under...

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