§ Mr. David Hunt
asked the Secretary of State for Social Services what updating takes place on the hospital index of price valuations; whether new adjustments of the hospital index of price valuations takes account of the oil increases over the last 12 months; and whether adjustments have been made to area health authority budgets to take account of these increased costs.
§ Mr. Patrick Jenkin
The health services prices index reflects the market prices of goods and services purchased by health 563W authorities. It is updated each month and, in the case of oil, the monthly adjustments reflect the average market prices for heavy, gas and medium oil of 13 leading oil companies. The 1980–81 cash limits for regional health authorities are based on actual price levels at November 1979, together with provision for a 14 per cent. increase in prices generally between the average for 1979–80 and 1980–81. The Department does not establish cash limits for area health authorities; these are set by regional health authorities.