Practice Budgets and Incentive Arrangements in South Hams & West Devon PCT

1. Practice Budgets and Incentive Arrangements in South Hams & West Devon PCT Caroline Price

2. Why Implement Practice Budgets and Incentive Schemes? • Clinical Freedom to GP practices • Allows PCT to lever strategic change • Finite resources within the NHS • Financial Flows • Patient Choice

3. What have we achieved? • Practice level age standardised referral reports • Practice level expenditure reports • Practice level budgets

4. Practice Budgets • Relate to expenditure reports • Services mainly HCHS • Derived using 2/3 historical costs and 1/3 equity • Equity element derived from weighted capitation formula

5. Insurance and Incentive Scheme Arrangements • Expensive Patients • Viable size • Timing of incentive payments • Link to services covered within Financial Flows

6. Incentive Scheme Proposal • 1/3 to practice • 1/3 to PCT • 1/3 for performance improvement • Capped Payment to practices based on £2 per patient

7. What can the incentive payment be used for? • Materials or equipment • For treatment • For convenience • Non-recurring staff costs • Initiatives to improve healthcare

8. Next Steps • Include further services within expenditure reports • Refine budget setting process • Refine incentive scheme