Transcript Feasibility for Local Authority Co

Towards Cross-Regional
Commissioning
Locality Commissioning for Children
with Complex Care Needs
Background
Developing the Market
• - Implemented 2008
• - 6 LAs working together
Aim of project
• - To develop local market for high cost residential
placements to achieve Best Value
The project
• 24 – 30 Residential and Education placements
• 5 yrs with option to rise to 8 yrs
Outcomes
Block Contract
• Partnership trading arrangements
• Contracts with bonus and penalty clauses
Contract
• £2,900 /be/week
Savings
• Between £500 to 1500/bed /week
• Min £500,000/year
Implementation
• Started January 2011
The drivers
Children and young people with complex needs placed in
• High cost, spot purchased, numerous providers -20-25m
• Placements a long way from home
• Lack of empirical outcome measures
• Costs are not linked to quality
•
•
•
•
Real costs are hidden
Lack of Local Quality Providers
Nos too low for LAs to separately commission
Legislative changes
• Research on outcomes/commissioning
Objectives
• Commission a locally based, high quality service integrated with the
social care, education, and health services of the participating LAs for
24 CYP.
Achieve best value through partnership approach with a provider,
based closer to the home authorities and their partners.
• Partners :
• Buckinghamshire
• Milton Keynes
The consultants/ support;
• Revolution Consulting
Bracknell Forest Hertfordshire
Oxfordshire
Reading
IESE
NCB
Project processes
Project stage
Project Inception
The business case
Partnership of LAs
Service spec
PQQ
Contracts
ITT
Implementation
Monitoring
•
•
•
•
•
•
•
•
•
OUTPUT
Project Initiation Doc
Feasibility report
Data collection
Formal partnership
Service spec
PQQ
Contracts
ITT
Format of project
management
Outcomes
LAs
Providers
• 20 residential beds in
small houses
Flagship for provider
• 24 place school
Constant revenue protects their
revenue
• Provider bore up front
costs
• Unit costs £2,900/week
• Min savings/ week
£500.000/ week
Contract which rewards good
performance
Why do block contracts work for providers?
Economics of a 4 bed home
100
90
80
% of revenue when full
70
60
50
40
30
20
10
0
1
1
2
2
Number of Placements
3
Red = Revenue
3
4
Blue = Cost
4
PQQ scoring
Scoring Area
Relative Weighting
Regulatory (Ofsted Registration or equivalent)
Pass/Fail
Regulatory (Ofsted Inspection report)
15%
Statement of Purpose/Vision/Business Plan
15%
Financial Stability
10%
Insurance
Pass/Fail
Organisation
10%
Service Provision
20%
Policy and Procedure
30%
Total
100%
ITT EVALUATION
Weight
Service Delivery (60%)
Evidencing Outcomes
10%
Project Vision & Values
10%
Partnership Working
5%
Best practice
3%
Staffing
5%
Policies
2%
Education
5%
Health
5%
Monitoring/QA
5%
Young People’s Questions
10%
Price (40%)
35%
Proof funding & financial modeling
5%
TOTAL
100%
Advantages
• Build relationship with customers for the
long term
• Leverage off the contract into other areas
of service offering
• Reference site for contracts in other
regions
• Company valuation enhanced by evidence
of sustainable revenue streams
Opportunities
• Financial Savings
• Break new ground in regional
commissioning and governance
• Break new ground in evidencing outcomes
• Break new ground in evidencing impact of
interventions
• Break new ground in partnership building
Recommendations
• Low Risk pilot to build infrastructure
• Extend to more & other support services
• Dedicated project management time to
tender against agreed timescales
• Bid for commissioning money