NHS reference costs
Reference costs are the average unit cost to the NHS of providing secondary healthcare to NHS patients.
DHSC has collected reference costs from NHS providers for every financial year since 1997.
Reference costs are used to set prices for NHS-funded services in England. They also support our commitment to data transparency for the benefit of patients and the public.
Monitor is now accountable for the reference costs collection, with the department continuing to collect reference costs on its behalf. Monitor鈥檚 strategy for costing and cost collection to inform price setting is set out in their .
Published reference costs
The data collected in reference costs is presented in 3 ways:
- national schedules of reference costs - these show the national average unit costs derived from the average unit costs of NHS provider
- reference costs index - a measure of the relative efficiency of NHS providers
- database of source data - publishing the data submitted by NHS providers gives a valuable source of information for benchmarking of costs and other more detailed analysis (only source data from 2008 to 2009 is currently available)
Reference costs from 1998 to 2009 are available on the .
Reference costs collection guidance
The submission of reference costs by NHS providers is supported by detailed guidance published each year by the department. This guidance has been part of Monitor鈥檚 鈥楢pproved Costing Guidance鈥� since 2013.