Transcript Slide 1

Payment By Results – The Provider Perspective
Karen Biggs
Chief Executive
Phoenix Futures
Recovery in our Communities
Cat is out of the bag!
Payment
by
Results
•
Clear Government ideology
we believe the underlying principles fit well with the increased levels of pooled
funding, that will take place from April 2011, and that offer greater opportunities for
local areas to take advantage of joint commissioning and reduced duplication of
systems.
Drug Strategy 2010
•
Implementing under localism
‘’government commitment to enabling other areas of the country to have the
opportunity to become early adopters of innovative and successful models and
techniques as the pilots progress.’’
Recovery in our Communities
Testing the market
•
Early Adopters of PbR
– Stoke, Suffolk, Milton Keynes, Worcester. Lewisham
•
Most current tenders have a PbR element
•
System redesign and retender
– Applied from the 1st year ( Hull – 20%)
– Applied from year 2 ( Coventry and Warwickshire 20%)
– Incremental ( Sandwell Yr1- 10%, Yr2 20%, Yr3 – 30%)
•
Contract review
– review of service spec, VFM and Needs of Area (Birmingham 4%)
•
MoJ services
– Visitor centres London prisons (20% PbR)
Recovery in our Communities
Impact on the Market
• LOCALISM
– Plurality of PbR approaches across the country has implications
for systems, monitoring and measuring outcomes
• Drive improved recovery outcomes ?
• Drive down costs?
Opening the market up ? (Opportunity for ‘new providers’ )
Or
Closing the market down? (Pushing good smaller providers out)
Recovery in our Communities
Impact on the Sector
• Force providers to face
localism
• Plurality of models has
implications for cost
• Increased competition in the
market
• Already a very busy market
• Mergers and alliances
• No room for good small
providers
• Reduce Cost
• Increase price
Recovery in our Communities
Are we ready?
• Inevitably no possibly presents the biggest risk
• Challenges for Commissioners and providers
Recovery in our Communities
Ultimate test – Does it improve the implementation of the strategy
Risk Map for the Strategy
High
Public Health England
PbR
Likelihood
Low
Recovery in our Communities
Reduced public
funding
Impact
High
Karen Biggs
Chief Executive
Phoenix Futures
[email protected]
Recovery in our Communities