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Towards Cross-Regional Commissioning

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

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Towards Cross-Regional Commissioning

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  1. Towards Cross-Regional Commissioning Locality Commissioning for Children with Complex Care Needs

  2. 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

  3. 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

  4. 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

  5. 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 Bracknell Forest Hertfordshire • Milton Keynes Oxfordshire Reading The consultants/ support; • Revolution Consulting IESE NCB

  6. 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 Project processes

  7. LAs 20 residential beds in small houses 24 place school Provider bore up front costs Unit costs £2,900/week Min savings/ week £500.000/ week Providers Flagship for provider Constant revenue protects their revenue Contract which rewards good performance Outcomes

  8. Why do block contracts work for providers?

  9. PQQ scoring

  10. 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

  11. 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

  12. Recommendations • Low Riskpilot to build infrastructure • Extend to more & other support services • Dedicated project management time to tender against agreed timescales • Bid for commissioning money

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