Recovery in our Communities Payment By Results – The Provider Perspective Karen Biggs Chief Executive Phoenix Futures

Recovery in our Communities Cat is out of the bag! Clear Government ideology we believe the underlying principles fit well with the increased levels of pooled funding, that will take place from April 2011, and that offer greater opportunities for local areas to take advantage of joint commissioning and reduced duplication of systems. Drug Strategy 2010 Implementing under localism government commitment to enabling other areas of the country to have the opportunity to become early adopters of innovative and successful models and techniques as the pilots progress. Payment by Results

Recovery in our Communities Testing the market Early Adopters of PbR –Stoke, Suffolk, Milton Keynes, Worcester. Lewisham Most current tenders have a PbR element System redesign and retender –Applied from the 1 st year ( Hull – 20%) –Applied from year 2 ( Coventry and Warwickshire 20%) –Incremental ( Sandwell Yr1- 10%, Yr2 20%, Yr3 – 30%) Contract review –review of service spec, VFM and Needs of Area (Birmingham 4%) MoJ services –Visitor centres London prisons (20% PbR)

Recovery in our Communities Impact on the Market LOCALISM –Plurality of PbR approaches across the country has implications for systems, monitoring and measuring outcomes Drive improved recovery outcomes ? Drive down costs? Opening the market up ? (Opportunity for new providers ) Or Closing the market down? (Pushing good smaller providers out)

Recovery in our Communities Impact on the Sector Force providers to face localism Increased competition in the market Mergers and alliances Reduce Cost Plurality of models has implications for cost Already a very busy market No room for good small providers Increase price

Recovery in our Communities Are we ready? Inevitably no possibly presents the biggest risk Challenges for Commissioners and providers

Recovery in our Communities Ultimate test – Does it improve the implementation of the strategy Impact High Low PbR Reduced public funding Public Health England Likelihood Risk Map for the Strategy

Recovery in our Communities Karen Biggs Chief Executive Phoenix Futures