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

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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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.

9. 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.

10. 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

11. 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.

12. 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

13. 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.