1. Developing a Provider Organisation
Mark Jones
17 November 2006

2. Opportunity Providing is the financial opportunity not commissioning
The government still wants to move activity out of the hospitals and into Primary Care
West Herts PCT supports this agenda?
Withdrawal of services at Hemel Hospital may create a big opportunity
The PCT wants to deal with a single GP provider organisation?
Should DacCom be the vehicle for this?
17 November 2006
Mark Jones

3. Contracts We may be able to secure a position as a preferred provider
And avoid the need for competitive tenders
The DoH is progressively reducing requirements for tender
And there is no requirement if the provider organisation owns a patient list
17 November 2006
Mark Jones

4. Conflicts of interests
There is a theoretical conflict if GPs have both commissioning and provider roles
Others take a robust view
The PCT has both roles
Commissioning organisations elsewhere have taken on a provider role?
If necessary, DacCom could devolve its commissioning role
17 November 2006
Mark Jones

5. SWOT analysis Opportunities Threats Strengths Weaknesses
Ensure high quality services
Hold a position of influence
Grow practice profit
We always thought providing was the worthwhile part of PbC
Threats
Commercial competitors get there first and eventually break our monopoly of GP services
Commitment from the PCT is uncertain
Strengths
We own the patient list and are the gatekeeper for referrals
Clinical expertise
Facilities and support staff
Relationship with secondary care
Credibility
Weaknesses
Little commercial experience
Lack of resources
Not sufficiently agile to respond to rapidly developing opportunities
Aversion to financial risk
17 November 2006
Mark Jones

6. Business structure Ensure a fair return for all participants
Resource providers
Administrators
Referring practices
Avoid competitive tenders if possible
Ensure conflicts of interest are addressed
Address our areas of weakness
Secure buy-in from the PCT
Identify and address any need for capital investment
Take account of other stakeholders / players
Hospital trust
Commercial providers
Neighbouring clusters
17 November 2006
Mark Jones

7. What are we asking for today?
Agreement in principle that DacCom should seriously consider developing a provider function
Identification of major issues and red lines
17 November 2006
Mark Jones

8. What will we do next? Develop an outline business model
Open discussions with the PCT regarding a provider role
Seek approval from the Practices before proceeding further
17 November 2006
Mark Jones