1. Practice Budgets and Incentive Arrangements in South Hams & West Devon PCT Caroline Price

2. Why Implement Practice Budgets and Incentive Schemes? Clinical Freedom to GP practices Allows PCT to lever strategic change Finite resources within the NHS Financial Flows Patient Choice

3. What have we achieved? Practice level age standardised referral reports Practice level expenditure reports Practice level budgets

4. Practice Budgets Relate to expenditure reports Services mainly HCHS Derived using 2/3 historical costs and 1/3 equity Equity element derived from weighted capitation formula

5. Insurance and Incentive Scheme Arrangements Expensive Patients Viable size Timing of incentive payments Link to services covered within Financial Flows

6. Incentive Scheme Proposal 1/3 to practice 1/3 to PCT 1/3 for performance improvement Capped Payment to practices based on £2 per patient

7. What can the incentive payment be used for? Materials or equipment For treatment For convenience Non-recurring staff costs Initiatives to improve healthcare

8. Next Steps Include further services within expenditure reports Refine budget setting process Refine incentive scheme