CHSL Provider Arm Proposals Working Group Feedback CHS Ltd - Transparent - Inclusive - Collaborative - Innovative

Vision To build a Company which is open to all Contractors, so that all can benefit equally from the support and opportunities that this will bring with the changes to the commissioning environment. To have a mechanism for Commissioners to engage with and commission services through a single contracting vehicle for the whole West Midlands. For the Company to support local and wider spread initiatives, being both proactive as well as reactive. CHS Ltd - Transparent - Inclusive - Collaborative - Innovative

Aims Work collaboratively with other Providers to deliver services Provide the infrastructure to support service provision including training, IT and marketing for members Work proactively to create opportunities for Contractors at a fair rate of return Break even by end of year three having paid the LPC loans back in full and creating sufficient income to cover the costs of running the business and to deliver a Dividend to all members whilst providing fair return to all members providing commissioned services. CHS Ltd - Transparent - Inclusive - Collaborative - Innovative

Geographical Footprint West Midlands PSNC footprint (12 LPCs) West Midlands CPWM NHSE footprint (9 LPCs) CHS Ltd - Transparent - Inclusive - Collaborative - Innovative

CHS Ltd - Transparent - Inclusive - Collaborative - Innovative

Board of Directors Five Directors – two LPC appointed (via the Scrutiny & Oversight Committee) and three non – LPC appointed by the members. It is suggested that initially all 5 are appointed by the Scrutiny and Oversight Committee for a period of 12 months. Quorate for voting will require 3 out of 5 Directors to be present and must include both LPC Directors. Directors will need to drive Company and have capacity for 1-2 days per month. They will need to appoint a development manager / support to run business day to day. CHS Ltd - Transparent - Inclusive - Collaborative - Innovative

Membership All Contractors will be able to join as members and have voting rights and ultimately appoint non LPC Directors Associate membership will also be available, without voting rights but same fee for joining. Initial membership joining fee will be £150 per member (one member representing one Contractor and having one vote) Joining Fee after 3 months will be £400 per member or associate member The members will list all of their Contracts within the geography who they wish to be available to provide services. Annual Fee to be set by Board each year to cover running costs – this will be paid by each member for each premise listed All members and associate members will be able to express interest in providing services available provided it is within their competence and they are able to meet the service requirements, within the geography covered by the service. The members providing the service will benefit from the associated service fees received by the Company, minus any costs to the Company where these are not covered by a separate management fee. CHS Ltd - Transparent - Inclusive - Collaborative - Innovative

Scrutiny & Oversight Committee Each LPC will have a representative (member or officer) appointed from their LPC who will sit on the Scrutiny and Oversight Committee The representatives should include a mix of Chief Officers, Chairs / Vice-chairs and ideally a Treasurer / Finance Lead Include at least one CCA and one Independent Each LPC should have a proposed representative and deputy agreed by November cluster meeting so that the CPWM can ensure that the proposed mix meets criteria required This Committee will meet at least quarterly and review past and proposed future expenditure This Committee may form part of CPWM Cluster Group and meet on the same day to reduce costs. This Committee appoints the 2 LPC nominated Directors. These Directors may or may not be members / officers of the LPC CHS Ltd - Transparent - Inclusive - Collaborative - Innovative

CHSL Year One Estimated Expenditure 5 Directors meeting monthly for first year – each half a day £6K 5 Directors putting in hours to drive business £5K BDM – part-time £25K Adhoc admin support £5K Accountant support / finance advice £2K Virtual or physical office / materials set up /website etc £5K Most of these costs will be recurring and will need to be covered by management fees achieved and supplemented by annual membership fees, which will be set by the Company Directors. Total £48K CHS Ltd - Transparent - Inclusive - Collaborative - Innovative

LPC Loan Proposal Jan 1st 2017 Apr 1st 2017 June 1st 2017 June – Dec 2017 Jan 1st 2018 £30 per Contractor £10 per Contractor No further payments as front loaded £25 per Contractor all front loaded 60% of annual amount being loaned up front 20% of annual amount Payments completed year one 100% of annual amount being loaned year two To determine whether LPCs set up standing order to pay CHSL on agreed dates or CPWM to hold the funds, LPCs transferring the money ahead of time.   CHS Ltd - Transparent - Inclusive - Collaborative - Innovative

LPC Actions Action When Who Comment Adapt Letter for LPC (Appendix A) August 2016/ first week September Chief Officer LPCs   Send out adapted letter by usual means and put on LPC website First two weeks of September 2016 with 2 - week turnaround for comments. Collate any queries or concerns raised and share with Cluster LPCs LPCs to budget for the non -returnable fund for provider arm work up to and including incorporation £5 / Contractor one off. September 2016 Treasurer LPCs LPCs to approve final documents for Contractor Vote September 2016 / October 2016 Chief Officer / Chair LPC Working Group to complete with legal advice by 21st September Arrange provisional EGM in November aligned to another LPC meeting To be held prior to 21st November Two weeks -notice of EGM and voting documents Add Provider Arm to AGM Agenda and refer to it in the Annual Report. September / October  LPCs to consider who representative and deputy will be on S&O Committee LPCs to send out EGM voting documentation November (min 2 week notice period) to arrange vote to be completed by 21st Nov LPCs to budget for the loan to the Company £75 per Contractor over 18- month period, repaid within 3 years November 2016 – post vote declaration LPCs to appoint reps for Scrutiny & Oversight Committee November 2016 CHS Ltd - Transparent - Inclusive - Collaborative - Innovative

CPWM Enabling activities Draft updated ToR available, currently no decision making powers, reflects new membership and footprint. To be developed to meet new ambitions over time Set up a bank account to hold funds to support CPWM activities Proposal that move towards CPWM members having delegated powers for relevant areas from member LPCs to allow decisions to be made at CPWM Possibly reduce frequency of meetings to allow early agenda preparation to support LPCs to give delegated authority on any proposed areas for a decision Consider alignment with S&O Committee if CHSL goes ahead Proposed budget – each LPC to contribute £15 per Contractor per year Consider movement towards a federation model CPWM Running costs   Task and Finish Groups 2,000.00 Strategic Meetings NHSE 600.00 Medical Directorate 400.00 Miscellaneous 500.00 Venue 3,600.00 Administrative Tasks 5,000.00 Travel 300.00 Contractor Events Totals £12,400.00 CHS Ltd - Transparent - Inclusive - Collaborative - Innovative