Andrew Fairbairn is a consultant old age psychiatrist (St Nicholas Hospital, Gosforth, Newcastle upon Tyne NE3 3XT, UK. Email: andrew.fairbairn{at}nmht.nhs.uk) and a former Registrar of the Royal College of Psychiatrists. He has a special interest in health service management.
The Department of Health is introducing a payment by results system for mental health services in the UK. The system is already being used in the acute healthcare sector, but is still under development for application in mental healthcare. This article outlines the concept of payment by results, briefly reports on its use in other countries and describes the pilot study underway in England to define currencies to be used in a payment by results system planned for NHS mental healthcare throughout England and Wales.
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