Sector Update on SHS Strategic Directions Sharon Gudu, Director - Design & Stewardship I would like to acknowledge that this meeting is being held on the traditional lands of the Gadigal people of the Eora Nation. I pay respect to Elders past, present and emerging.

Commissioning SHS for Outcomes On 16 May 2018, the FACS Secretary attended the Homelessness Sector Network Meeting and updated the sector on the transition to outcomes-based commissioning of SHS. A communique was distributed to the sector on Friday 17 May 2018, summarising key messages. In November 2015, the NSW Government announced a funding extension for SHS from 2017 to 2020. This extension was linked to a commitment to implement outcomes-based commissioning. In December 2017, Cabinet approved a roadmap for implementing outcomes-based commissioning. It outlines a staged approach, with partial implementation by 2020 and full transition by 2023.

What is Outcomes-Based Commissioning about? Outcomes-based Commissioning (OBC) seeks to shift the emphasis in the contracting environment: from the services a provider will offer to the outcomes they achieve for their clients. OBC is driven by data and evidence about what works for whom, where and why. It places the outcomes being achieved for clients, at the centre of the contracting relationship.

Key Principles Moving Forward Outcomes for clients are placed at the centre from the start . The role & accountability of SHS in broader service system is clarified. An Outcomes Framework developed through collaborative, transparent design and implementation. Evidence-based practice is promoted. A robust Quality Assurance framework supports outcomes focus. There is ongoing capability development for providers and FACS. Future contracts will include clearly defined, measurable and attributable outcomes . Performance management is outcomes-focused and data driven. Commissioning for outcomes encourages meaningful engagement with service users and communities to better understand needs to inform decision making. Outcomes-based commissioning models can be effective in driving continuous improvement and demonstrating how services are delivering outcomes for clients. Commissioning for outcomes seeks to shift the emphasis from the services a provider will offer to the outcomes they achieve for their clients. It is driven by data and evidence about what works for whom, where and why.

FACS Vision for 2020 Re-contracting New contracts that contain: Outcomes for clients at the centre a set of key outcomes and indicators relevant to the service package a process for measuring and reporting against these outcomes agreed outcome/performance targets (fully recognising that this is a first run attempt at quantifying). a clearer specification of the client cohorts that will be prioritised a clearer specification of the service activities to be provided, and their link to evidence-based practice relevant to these cohorts. a commitment by SHS to undertake ASES accreditation. a process & principles for managing the contracting relationship when agreement or delivery is not going well. Friday, November 30, 2018

Streams of work supporting Recommissioning of SHS for 2020 Develop an outcomes framework – agree the priority client outcomes for which SHS providers are accountable for / contribute to for inclusion in contracts. Program monitoring and evaluation - establish performance-based, data-driven relationship management, based on defining, measuring outcomes that are attributable to the activity of a provider. Develop approach to contracting for 2020 with regard to outcomes measurement and performance management– develop principles to underpin future SHS contracts, promoting a performance based, strategically commissioned service. Refine  service specifications – increased focus on evidence-based practice and client outcomes and address priority needs/gaps. A new quality assurance framework –adopting the Australian Service Excellence Standards for FACS funded SHS. In order to implement commissioning for outcomes for SHS, substantial work is needed to lay the foundations for the shift to outcomes-based commissioning. The first key activity developing an SHS outcomes framework, will be progressed through the consultation with providers on outcomes measures and indicators.

1. Develop an outcomes framework FACS, supported by ARTD, will consult the sector from late May and throughout June 2018 to collaboratively identify and agree priority outcomes and indicators are the SHS Program. The consultations will inform development of an SHS Commissioning for Outcomes Framework by end of July which will outline: key SHS commissioning outcomes and outcome indicators to inform recontracting in 2020 suggested tools and methods for measuring and reporting outcomes an implementation plan for further developmental work and system changes in order to trial the new outcomes framework.

Develop an outcomes framework (cont.) ARTD Consultants will engage with the SHS sector to: identify client outcomes for which SHS providers can be accountable identify performance measures and indicators which can be used to demonstrate providers’ contribution to client outcomes. 12 district consultations to be held in: FACS Districts will also be represented at the consultations. Head Office Directors, Joe Parsons / Sharon Gudu will be attending with D&S staff to support the consultations. Armidale 28 May Newcastle 7 June Parramatta 18 June Ashfield 30 May Ballina 12 June Wagga Wagga 19 June Gosford 5 June Coniston 13 June Bankstown 20 June Broken Hill 6 June Dubbo 14 June Coffs Harbour 27 June

2. Program monitoring and evaluation FACS will scope system requirements to collect data for the selected indicators and outcome measures Communication/education with the sector around new measures Undertake Pilot data collection to test indicators and outcome measures Evaluate pilot collection (by Sep 2019) Implement system requirements (by Dec 2019) Train sector in new data collection and reporting (Jan - Jun 2020) Commence new data collection (1 July 2020) Evaluate implementation of collection Establish baseline performance levels (Jul 2020 – Jun 2021)

Develop contracting principles to: 3. Develop approach to recontracting for 2020 (re outcomes measurement and performance management) Develop contracting principles to: incorporate outcome measures and Manage the contract relationship in a data-driven, performance and outcomes focused context (by Jun 2019). There will not be a tender process for the SHS Program in 2020.

4. Refine service specifications District based discussions to refine service specifications (parameters to be advised) (by Jun 2019) Prepare draft SHS contracts linked to activity/delivery specifications and outcomes based performance indicators (by Sep 2019) Negotiate new contract arrangements with providers (by Dec 2019) Issue new contracts (by Mar 2020) Commence new contracts (1 July 2020) Districts will have an important role to play in developing and negotiating refined service specifications.

5. A new Quality Assurance framework In agreement with the Industry Partnership, FACS will adopt the Australian Service Excellence Standards (ASES) for the SHS program. ASES is an accredited quality assurance system with third party verification. A robust Quality Assurance process is critical a underpinning to Outcomes-based Commissioning, ensuring: Client-centred focus in service delivery Accessibility and cultural competence Client rights and safeguards Evidence-based practice Strong governance & financial sustainability

A new Quality Assurance framework (cont.) The ASES was found to have 86 per cent equivalence with the SHS Standards, meaning much of the work SHS providers have undertaken to meet the Standards will be relevant for the accreditation process From mid 2023, FACS plans to make ASES accreditation a requirement for any SHS contracts, meaning SHS providers have five years to undertake and complete the process FACS will fully subsidise accreditation costs for organisations with less than $5m per annum revenue. Industry Partnership will provide support to organisations Pilot to commence in mid 2018 – nominations will be called for. Accreditation takes on average 12 months. FACS will also encourage organisations that provide services to homeless people but who are not funded by FACS under SHS, to undertake accreditation.

Implement new Quality Assurance framework (cont.) Accreditation is expected to take 12 months to achieve. Following evaluation of the Pilot, accreditation of providers will need to occur progressively between July 2019 and June 2023. The process for including providers in each accreditation phase is yet to be determined, but ideally would see approximately 50 providers achieving accreditation each year. As ASES accreditation is renewable 3 yearly, providers accredited prior to July 2020 will need to be re-accredited before 2023.

A new Quality Assurance framework (cont.) May 18 Initial communications to sector May - Jun 18 Finalise implementation plan with Industry Partnership June 18 - Jun 2020 Ongoing communication & training for sector May - Jul 18 Call for participants to trial ASES in order to test and amend the evidence guidelines Aug 18 – Sep 19 Trial with selected providers. Jul 2020 Phased implementation commences. Providers supported and resourced in four phases to progress accreditation. Jul 20 – Jun 23 Provider implementation & accreditation. FACS monitoring of uptake, progress and completion. Jul 2023 Accreditation required for re-contracting. .

Summary of Work Streams and Indicative Timeframes Streams/activities Timeframes Develop an outcomes framework May 2018 to July 2018 Program monitoring and evaluation July 2018 to June 2019 Develop approach to contracting for 2020 with regard to outcomes measurement and performance management Refine service specifications July 2018 to December 2019 A quality assurance framework 2018-19: trial ASES 2019-20: review trial, develop tools & supports 2020-23: all SHS undertaking accreditation Mid-2023: All SHS accredited

Questions and discussion