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How are personal health budgets managed?

Once a care plan has been agreed, the money in a personal health budget can be managed in three different ways:

  • A notional budget: The NHS holds the money, and buys or provides the goods and services patients have chosen.
  • A third-party arrangement: An organisation legally independent of the patient and the NHS holds the money on their behalf, and buys or provides the goods and services chosen.
  • A direct payment for healthcare: The money is transferred directly to the patient, and they buy the goods and services agreed in their care plan.