Workshop 10 Developing a Commissioning and Procurement Board for Adult Services in London

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Workshop 10Developing a Commissioning and
Procurement Board for Adult Services in London

• Mark Brooker London Councils
• 09/07/2007

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Why was the Board established?

• Average unit costs in London are 18 above the
  national average (high staffing costs, extensive
  use of agency staff and high property prices)
• Social services departments have an average
  budget deficit of 5.7 which they face
  considerable difficulty in tackling (Londons
  formula grant share has increased by less than
  the national average, education budgets have been
  ring fenced and Council Tax bills have been
  capped)
• The cost of providing adult social care in London
  is projected to rise considerably(2.3 billion
  in 2005/06 to 3 billion in 2010/11 RSe
  Consulting 2007)
• - Increasing numbers of frail older people
• - Increasing numbers of people with learning
  disabilities
• - Inflation in residential care and home care
  unit costs above RPI
• - Increasing number and complexity of care
  assessments
• - Reducing client contributions
• - Demand for a new service mix (Direct
  Payments and Individual Budgets)

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What are the objectives of the Board?

• Main objective
• To assist the London boroughs with the efficient
  commissioning and procurement of services for
  adults with social care needs, developing
  opportunities for regional and sub-regional
  actions that increase the supply of good quality
  and good value residential and home care services
  available to Londoners
• Activities to include
• Improving the knowledge base - developing a
  greater understanding of borough purchasing
  behaviour, the role of different providers in the
  market and gaps in existing provision
• Increasing the amount of joint commissioning
  and procurement
• Strengthening partnerships with providers and
  the NHS in London
• Identifying efficiencies through joint
  activities (e.g. shared contracts and service
  specifications)
• Encouraging providers to develop new services
  

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Progress so far

• Membership of the Board agreed
• - Director level borough staff (Greater London
  Association of Directors of Social Services -
  GLADSS)
• - London Councils
• - London Centre of Excellence
• - Care Services Improvement Partnership (CSIP)
• Project plan developed including deliverables
• 50K funding agreed with the London Centre of
  Excellence to commission a study of social care
  providers that will look at the capacity of the
  market to meet new demands for services within
  budgetary constraints. Mapping of current
  activity and assessment of opportunities for
  joint activity and for the development of new
  services.
• The Pan London Pre-Placement Contract for Adults
  with Disabilities, the Fair Pricing Tool,
  www.londoncareplacements.gov.uk, the
  Commissioning Board for Adults with learning
  disabilities

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Challenges to effective commissioning in London

• Weaknesses in our knowledge of the care market
• Who are we purchasing from? (volatile market with
  many takeovers, big companies trading under other
  names, data inconsistencies (e.g. typos and
  abbreviations, inaccurate sector information)
• What are we buying? (how much detail do you need
  to break this down into? It is often difficult to
  identify adult social care expenditure when a
  provider operates services for children as well.
  Separating expenditure into different client
  groups and service types can also be problematic.
  Do providers really charge different amounts to
  different local authorities for the same
  services?)
• What do we need? (Does London have the correct
  service mix, high use of intensive home care and
  out of London residential placements)

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Challenges to effective commissioning in London
(2)

• Agreeing model contracts, service specifications,
  pricing structures etc.
• Sharing the workload and keeping the momentum
  going

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Any questions?

• Contact for further information
• Mark Brooker
• Research and Policy Officer
• London Councils
• 59½ Southwark Street
• London SE1 0AL
• Tel [phone]
• Email mark.brooker_at_londoncouncils.gov.uk
• Websites http//www.londoncouncils.gov.uk/
• https//www.londoncareplacements.gov.uk