1. Investing in Extra Care in Manchester A Cost – Benefit Analysis
Securing Investment in Extra Care
Leo Wall Manchester City Council

2. Introduction
Background – devolution and new investment in Health & Social Care in Manchester
How we used a cost – benefit analysis (CBA) to secure investment in Extra Care in Manchester
What is a CBA?
How they work
What the results were for Extra Care
How it has been used in Manchester
Introduction

3. background
Greater Manchester devolution deal - £450m investment made available for GM authorities through the GM Transformation Fund, to bid into to invest in health and social care services. Manchester bid, supported by CBA secured around £50m funding for acute and community new care models Within Manchester a number of business cases or new care models were presented to commissioners to decide which services to invest in – Extra Care being one of them Key to this process has been the economic modelling using a CBA approach.
Background

4. What is a CBA?
A weighing-scale approach to making business decisions – all the pluses (the benefits) on one side of the scale and all the minuses (costs) on the other side
What is a CBA?

5. What goes into a CBA CBA model Model Inputs Logic model Costs
Assumptions
Costs
Logic model
Model Inputs

6. Model Inputs
Input: £5.6m new investment to fund neighbourhood apartments and additional care within 8 extra care schemes over a 3 year period
Target cohort
older residents in Manchester (resident and/or registered with a Manchester GP)
generally those leaving hospital and unable to return home,
need for more suitable property for short period of time,
need 24 hour access to care and support
Extra Care Model Inputs

7. Logic Model/Theory of Change
Inputs – new investment, new opportunities Activities – secure leases for neighbourhood apartments, furnish them and achieve occupancy rates. Make people aware of this resource Outcomes – People chose to live in Extra Care housing, acute hospital avoidance, faster discharge from hospital, delayed or avoided residential care admissions, improved health and wellbeing and greater independence of residents
Extra Care Logic Modelling

8. Model Assumptions
Schemes will be built on time and planned number of units will be available
H&SC staff are aware of scheme and make referrals
By accommodating people in Extra Care residential care admissions can be delayed or avoided
Cost of care in Extra Care setting is cheaper than residential care and the outcomes are at least as good
Model assumes 95% occupancy rate
Savings can be realised to continue funding future care
Extra Care Model Assumptions

9. Model Outputs
Extra Care CBA Results

10. Model Outputs - breakdown
Extra Care Savings Breakdown

11. Using the CBA Model
The model was used to support the successful bid for investment It can be used as a starting point for performance management metrics – evidence and monitor saving targets It can be adjusted to take account of delays in schemes being built It can be used to identify saving targets for individual schemes
CBA Model Usage

12. Questions Leo Wall Manchester City Council l.wall@manchester.gov.uk
Leo Wall
Manchester City Council