1 Working with EM Care Home Associations

Click to edit Master text styles Second level Third level Fourth level Fifth level East Midlands Continuing Care Collaborative Procurement [NCA/DCHA Joint Event] 23 rd March 2010 By Chris Spark – Assistant Director of Procurement Working with E. Mids Care Home Associations

3 Objectives for our session  To Introduce re:source Procurement Hub  To Highlight Some Achievements  Introduce the Continuing Care Project  Questions Working with E. Mids Care Home Associations

4 Supply Chain Excellence Programme Annualised Savings Target of over £500M by end 2007/08 Collaborative Procurement Hub savings target £270m National Contracts Procurement – Savings target £240m NHS consumables supply chain & procurement service NHS Purchasing & Supply Agency reorganisation Addresses £4bn of NHS PASA influenceable spend Improve sourcing of national products through new national framework agreements Encourage trusts to use new agreements Addresses regional East Midlands NHS spend c. £1bn Improved performance through collaboration with providers Efficiency – procurement resources are focussed in the right areas Restructure to deliver more effective and strategic national procurement Meet future objectives of SCEP and Arms’ Length Bodies’ Review recommendations Determine whether the most effective supply chain and procurement service for the NHS can be achieved by partnering with the independent sector Why Are We Here? Working with E. Mids Care Home Associations

5 Our Purpose Improve peoples’ lives through the delivery of World Class procurement Working with E. Mids Care Home Associations

6 BD Plastipak Syringes – Collaborative Rebate The Solution  An agreement with BD for a 17% rebate (cash back) for every Plastipak syringe purchased – based on hitting a regional usage target  Having engaged with trusts to standardise spend to BD the cash benefit totalled £288k The challenge  No regional direction on syringe spend which offered best quality and value to the end user  Trust use many suppliers and supply routes – therefore, no leverage for negotiating volume based discount with suppliers Working with E. Mids Care Home Associations

7 Rehabilitation Project  60+ patients have been placed into a more clinically appropriate and less intensive care setting  Reduced the length of stay positively impacting the patient’s outcome and well-being  The release of bed capacity through more regular patient assessments and demand management  Cash releasing savings through more informed spending decisions matching the patients’ needs to the level and cost of care provided  Support for World Class Commissioning  Case study developed for future NHS leaders to showcase innovative procurement Working with E. Mids Care Home Associations

8 Continuing Care is big business  East Midlands region spend – c.£170m  Over 9000 service users  With over 1200 providers  Covering 9 PCTs Working with E. Mids Care Home Associations

9 …….but existing structures are flawed Contract  No contracts in place over the majority of the region  Providers and PCT's vulnerable to challenge Specifications  No common specifications across the region  Wide variances in care standards  Providers and PCT's vulnerable to challenge Quality  No common Quality standards  Disjointed/duplicated Quality monitoring  Providers and PCT's vulnerable to challenge Pricing  No agreed pricing structures  Pricing largely negotiated individually  No agreed uplift mechanisms  Providers and PCTs vulnerable to challenge Working with E. Mids Care Home Associations

10 The near future…. Working with E. Mids Care Home Associations Contract  New DoH contract due in June  NHS re:source/CHA’s lobbying DoH over contract format Specifications  Common specifications almost complete for the region anticipated issue April  NHS re:source and ECCA lobbying for them to become National standards Quality  Common standards and tools to be adopted as part of new specifications. Anticipated April  PCT’s to share quality monitoring responsibilities Pricing  Common structure under development  Pricing based on Patient needs/Decision Support Tool scores  Proposals to contain uplift mechanisms

11 What is Any Willing Provider? Working with E. Mids Care Home Associations  The AWP process involves a simple set of rules  Simple process to accredit appropriately qualified providers to deliver specific services to a specific market  It is not really a competition because there are many winners i.e. all the providers that meet the accreditation standards will be awarded a Contract  Our process requires:  Certainty of service  Certainty of cost & a payment regime  Certainty of contracting terms and no volume guarantees

12 The AWP Process Working with E. Mids Care Home Associations NHS re:source publishes specification, quality and price schedules Potential providers review schedules and agree terms (or not!) NHS re:source allocates business to providers that have accepted terms Review process ongoing Published on INTERNET Notification by Input via BRAVO web pages Yes/No structures where poss. Regional support forums Implementation options to be discussed by PCT Boards July / August November 2011

13...but we hope to be complete by Xmas Working with E. Mids Care Home Associations 2.Set scope and participants 3.Sign off service specs & QMT 7. Advertise services; 8.Open AWP on BRAVO AugSept OctNovDecJan 2010 FebMay Apr Go Live 4.Construct questions & framework of rates for AWP questionnaire 5.Design commissioners input process / support web pages 10. Evaluate questionnaires 11. Summarise findings 12.Inform Market who successful providers are 1.Evaluate provider market MarJunJul Aug SepOctNov DecJan Agree actual participants 9.Run AWP provider forums

14 Help Us Help You Working with E. Mids Care Home Associations  It is in all of our interests to rectify the commercial and quality structures surrounding Continuing Care  Help us to get it right by getting involved in the process of developing the right infrastructure NHS re:source contacts: Chris SparkManinder Dulku Patrick Eastham Or support via your local Care Home Association

15 Greater Manchester Collaborative Procurement Hub – Delivering Supply Chain Excellence To Benefit Patients …ensure our collective ability treats more patients, safely, with better outcomes By working together we should…

16 Questions Thank you for listening, any questions? Working with E. Mids Care Home Associations