What are the issues for the health sector when commissioning from 3rd sector organisations and what

1

• "What are the issues for the health sector when
  commissioning from 3rd sector organisations and
  what are the challenges?"
• Mandy Ansell
• Head of Strategic Commissioning and
• Market Development

2
Definition Governments working description of
the Third Sector

• The third sector incorporates a huge diversity of
  non-governmental organisations. They are value
  driven and principally re-invest surpluses or
  raise funds to further social, environmental or
  cultural objectives. The sector includes
  community groups, voluntary organisations, faith
  and equalities groups, charities, social
  enterprises, co-operatives, mutuals and housing
  associations. (Office of the Third Sector.)

3
PCTs as Commissioning Organisations where are
we now?

• PCTs in the Shires new organisations from 1st
  October 2006
• Internal focus on PCTs as commissioners and the
  arms length relationship of Provider Side
  Services
• Commissioning Capability?
• New competencies to be launched in November
  PCTs will be assessed against these

4
Overarching strategy

• 5 year strategy out to consultation
• Objectives
• Reduce health inequalities 10 year life
  expectancy difference between East and West of
  the PCT
• Meet national targets as an organisation and as a
  commissioning body
• Be accountable to our public, patients, key
  stakeholders and partner organisations
• Performance managed as part of EOE St HA

5
Issues to be addressed through the strategy

• Our NHS our Future Darzi Report
• Fair
• Personalised
• Effective
• Safe
• Strategic Direction of EOE
• Local context inc the changing face of primary
  care services
• The Market contestability and plurality of
  providers. The level playing field.

6
What are the issues we face?

• There is a need for a common understanding of
  objectives and terminology what is the
  statutory framework within which health sits?

7
Options Appraisal for new market entrants
Costs
Benefits
Investment
Risk including Governance and Safety
8
Procurement methods and issues for the NHS

• Non competitive (direct negotiation e.g. AE
  services) and competitive tendering (where more
  players in the market)
• Competition Law issues EU law applies
• Level playing field and equal access
• State aid issues remember the NHS bodies pay no
  tax, benefit from joint purchasing, CNST and do
  not have consistent regulatory regimes with the
  IS

9

• Need for a target to show a rise in commissioning
  of third sector services what will the metric
  be?
• 3rd Sector involvement in redesigning services
  and transformation
• Will the push to increase commissioning of public
  services from the 3rd sector mean there is a
  danger that the sector will lose its independence
  from government?

10
Options for understanding the growth in the 3rd
Sector performance management

• The third sector has an essential role in
• developing and supporting community
• wellbeing. The Government and other
• agencies are encouraging strengthening the
• capacity of the third sector to work with
• statutory agencies and provide community
• support. The Compact.

11

• The number of third sector organisations the
  partners fund
• The partners level of funding of the third sector
  in the patch
• The number of people the partners fund through
  the third sector

12
Perhaps more importantly -

• How do we measure the impact on health
  inequalities with the shift of resources to the
  3rd Sector
• Innovation and increased wellbeing across
  specific community groups
• VFM financial recording systems and SLA
  monitoring framework
• The quality of the relationship
• Public and patient involvement

13
Taking Stock

• In summary
• Health Service committed to increase the services
  commissioned from the 3rd Sector
• Need to explicitly explore and agree key
  principles in engaging in a relationship
  Compact arrangements
• Must fit with strategic objectives

14
There will be a need to clarify and
agree with providers what constitutes the third
sector, how the third sector organisations view
their role and the expectations of the statutory
agencies. The definition and perception of the
third sector in the near future is likely to
change over time and thus will need to be
regularly monitored and updated through the
Strategic Commissioning service.Ref THIRD
SECTOR PARTNER FUNDING WEST ESSEXTO ESTABLISH
THIRD SECTOR ARRANGEMENTS TO INFORM ADULT HEALTH
AND COMMUNITY WELLBEING STRATEGIC INVESTMENT