Adult Hearing Services (Audiology) Market Engagement Event 12 January 2017 Jack Wagstaff, Head of Integrated Care

Structure of this session… Introduction & Context Current Service Landscape Service Scope & Clinical Model Payment & Contractual Model Process & Timeline Questions & Feedback

Introduction & Context This opportunity relates to the provision of assessment, fitting and aftercare for adults with hearing difficulties in North West Surrey Procured services will cover the entire NW Surrey Geography, although the structure of the procurement may include Locality Level Lots 363,000 registered population 67,000 people over 65 years old 3 Commissioning Localities 41 GP Practices ASPH main acute provider with some flows to RSCH and FPH

Scope of Services The scope of services within this opportunity includes direct adult hearing services- the assessment, supply, fitting, follow- up and on-going maintenance of hearing aids The clinical model is based on the national AQP framework with minor local variations- this is not an AQP procurement The procurement seeks to purchase a higher quality service that is more accessible and responsive to patient needs while shifting to a pathway based purchasing model

Clinical Model The model specified matches the national AQP framework, encompassing 5 pathways/packages of service Assessment only Assessment, unilateral fitting, follow-up and 3 years aftercare Assessment, bilateral fitting, follow-up and 3 years aftercare Annual aftercare post-3 years Aid replacement outside of warranty Change in needs at review. Provider initiates pathway restart via CCG Referral Support Service. Tariff 1, 2 or 3 re-apply accordingly

Notable Exclusions Complex audiology, advanced diagnostics and balance testing relating to ENT surgery and the treatment of wider conditions is excluded from this exercise All paediatric activity is excluded

Payment Model Payment is primarily based on the purchase of 3 year pathways for the assessment, supply, fitting and management of hearing aids under fixed tariff prices These tariff prices include the cost of devices and all related services An annual price is then chargeable for patients presenting for aftercare beyond the term of the 3 year pathway. Single activity prices are payable as follows: patients who are assessed and do not require an aid aid replacements outside of warranty

Payment Model- Tariff Prices Basis of Contract / Pathway Element Price 1 Assessment only £53 2 Assessment, supply and fitting of 1 aid, follow-up, 3 years aftercare and third year review £268 3 Assessment, fitting and supply of 2 aids, follow-up, 3 years aftercare and third year review £370 4 Annual aftercare (following third year review a patient presenting for aftercare will attract this tariff price once in the financial year regardless of the number of presentations) £25 5 Replacement hearing aid (due to mechanical failure outside of warranty during a period of annual aftercare following the third year review) £68 The Commissioner estimates the total value of this opportunity to be approximately £1m per annum.

Contractual Model This contract will be let under the terms of the NHS Standard Contract The contract term will be 3 years with an option to extend once for up to a further 3 years.

Testing of the Specification & Model Model in line with contracts successfully let across the country Model in line with national AQP framework and implementation guidance Direct testing with commissioners operating and expanding this model in their areas Pricing in line with national non-mandatory prices

Procurement Process Procurement process will take the form of a single stage open tender with a combined PQQ and ITT phase Contract may be let as a single lot covering the whole CCG area or multiple lots covering Locality Geographies All documentation and the full bidding process will be accessible via the Bravo Solution e-tendering portal and the opportunity will be advertised on Contracts Finder. www.contractsfinder.service.gov.uk www.commercialsolutions.bravosolution.co.uk

Approximate Procurement Timeline Milestone Approx. Completion Date Publish full tender documents 30 January 2017 Bids received (4 week completion window) 20 February 2017 Commissioner Evaluation and Clarification 20 March 2017 Ratify preferred provider 27 March 2017 Notify outcome and begin mobilisation 10 April 2017 New service commencement 17 July 2017

Questions & Feedback Some key points: Is the service model correct? Are the clinical pathways right? Does the commercial model present a viable opportunity to the market? Provider views on scale of provision and procurement: Single contract for CCG wide services, or; Potential for multiple provider delivery through locality based geographic lots.