The Market Forces Factor (MFF) is used to adjust resource allocations in the NHS in proportion to these cost differences, so that patients are neither advantaged nor disadvantaged by the relative level of unavoidable costs in different parts of the country. NHS England calculate an individual MFF value for each NHS trust and foundation trust.

NHS England calculate an individual MFF value for each NHS trust and foundation trust. The relative values for all trusts are presented in two indices:

• The underlying index, which is used to adjust funding for integrated care boards (ICBs): in higher cost areas, ICBs receive higher levels of funding through the allocation formula1 so that they are able to meet the higher costs of providers for the same level of healthcare.
• The payment index, which is used in the NHS Payment Scheme (NHSPS) to adjust unit prices for each provider.