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Oxfordshire Clinical Commissioning Group Contracting to support integration for mental health and older people Oxfordshire CCG’s approach to contracting for outcomes

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Page 1: Oxfordshire Clinical Commissioning Group Contracting to support integration for mental health and older people Oxfordshire CCG’s approach to contracting

OxfordshireClinical Commissioning Group

Contracting to support integration for mental health

and older people

Oxfordshire CCG’s approach to contracting for outcomes

Page 2: Oxfordshire Clinical Commissioning Group Contracting to support integration for mental health and older people Oxfordshire CCG’s approach to contracting

OxfordshireClinical Commissioning Group

This presentation

What do we mean by an outcomes based contract?

Our approach to procurement Developing the contract and contract

negotiation

Page 3: Oxfordshire Clinical Commissioning Group Contracting to support integration for mental health and older people Oxfordshire CCG’s approach to contracting

OxfordshireClinical Commissioning Group

What do we mean by an outcomes based contract?

One contract incentivised to deliver outcomes One contract that incorporates all of the services and

investment needed to deliver those outcomes One plan for the patient across all of the different

providers One system of clinical governance and accountability One database linked into national datasets Delivery

of outcomes…but not at the expense of quality Uses PbR clustering and coding to monitor activity Outcomes linked to the delivery of recovery and well

being Contract length that supports transformational

ambition-5+2

Page 4: Oxfordshire Clinical Commissioning Group Contracting to support integration for mental health and older people Oxfordshire CCG’s approach to contracting

OxfordshireClinical Commissioning Group

Approach to procurement (1)Know your market and your

organisationJanuary 2013 Phase 1 market analysis

included option appraisal as to how providers might be chosen

November 2013 Phase 2 had included more market analysis and determined two options Proceed with current providers via a

service review exercise Proceed to competitive procurement

Page 5: Oxfordshire Clinical Commissioning Group Contracting to support integration for mental health and older people Oxfordshire CCG’s approach to contracting

OxfordshireClinical Commissioning Group

5 Commercial Overview5.7 OPTIONS FOR ROUTES TO CONTRACT

State of Market(number of providers)Few many

Complexity of service

Degree of Integration required

Commissioning structure options Commissioning route options

Full competition Simple Limited Range of providers competitively procured

ITT or Framework

Full competition Complex Full Consortia competitively procured Competitive dialogue

No competition Simple Limited / Full

Development of the market Development of the market

No competition Complex Limited Single provider Single action tender with strong partnering & incentivisation

No competition Complex Full Lead provider with back to back subcontract arrangements

Single action tender with strong partnering & incentivisationDiligence on subcontractors

Some competition in specific service areas but with one dominant (lead) provider

Complex Full Lead provider with competition for subcontracts   Or Specialist integrator with back to back arrangements to dominant provider and sub contract providers.

Single action tender for lead with strong partnering & incentivisationCompetitive Dialogue for subcontractorsOr As above with Competitive Dialogue for integrator

Some competition in specific service areas with several dominant (key) providers

Complex Full Lead provider with competition for subcontracts   

Or Specialist integrator with back to back arrangements to key providers and sub contract providers

Competitive dialogue for lead provider roleSingle action tender for key providers with strong partnering & incentivisationCompetitive Dialogue for subcontractorsOr As above with Competitive Dialogue for integrator

Page 6: Oxfordshire Clinical Commissioning Group Contracting to support integration for mental health and older people Oxfordshire CCG’s approach to contracting

OxfordshireClinical Commissioning Group

5 Commercial Overview

There are pros and cons for each Commissioning structure and when assessing the optimal one these should be taken into account to understand which Pros and Cons have a material bearing on the situation and which Cons can be mitigated. The key Pros and Cons are set out below, but are assessed on a scheme level in each service section.

5.8 GENERIC PROS AND CONS OF EACH CONTRACTING ROUTE

Potential commissioning structure

Pros Cons Other considerations

Range of providers competitively procured

Competition in the market can drive quality and VfM

Risk of poor integration Integration risk held by the Commissioner

Consortia competitively procured 

Competition in the market can drive quality and VfM

Some risk of lack of integration requires strong governance

 

Contract awarded to Single provider 

Enables development of partnering collaborative approach

No contestability or pressure to drive quality Quality may be sub-optimal in non core areas

 

Lead provider with back to back subcontracting arrangements 

Specific services are provided by speciality providers  Integrator risk with provider

Limited contestability or pressure to drive quality Risk of compounding of required profit

Back to back arrangements with step in rights may be required

Lead provider with competition for subcontracts 

 

Specific services are provided by speciality providers  Some competition for specific services Integrator risk with provider

Limited contestability or pressure to drive quality for lead provider  Risk of compounding of required profit

 

Specialist integrator with back to back arrangements to key and sub contract providers

Potentially some element of competition

Requires strong contractual arrangements whereby risk is transferred to the providers and the integrators can effect change

 

Page 7: Oxfordshire Clinical Commissioning Group Contracting to support integration for mental health and older people Oxfordshire CCG’s approach to contracting

OxfordshireClinical Commissioning Group

Approach to procurement (2)

January 2014 Gateway review and increased emphasis on integration within system

February 2014 Decision to work with current providers

June 2014 Issued invitations to participate in most capable provider assessment

Page 8: Oxfordshire Clinical Commissioning Group Contracting to support integration for mental health and older people Oxfordshire CCG’s approach to contracting

OxfordshireClinical Commissioning Group

Most Capable Provider ProcessAssessment of

Provider engagement and demonstration of appetite

Acceptance of key principles Capability

Invitation issued with assessment criteria and providers given 40 working days to submit written proposal

Evaluation

Page 9: Oxfordshire Clinical Commissioning Group Contracting to support integration for mental health and older people Oxfordshire CCG’s approach to contracting

OxfordshireClinical Commissioning Group

Developing the contract and contract negotiation:Developing the Contract: National standard contract MCP provider submission used to inform the

development of the contract Prime Contractor model v’s Allied Contract Exercise national flexibilities where

appropriate to your approach e.g. local variations, local modifications & local prices

Secure legal support

Page 10: Oxfordshire Clinical Commissioning Group Contracting to support integration for mental health and older people Oxfordshire CCG’s approach to contracting

OxfordshireClinical Commissioning Group

Developing the contract and contract negotiationContract negotiation: Clearly define the negotiation timetable Set out requirements/expectations of the negotiation

meetings and roles of attendees Ensure sufficient administration support to accurately

capture agreements/actions with clear deadlines Schedule enough time to prepare for negotiations and

pre-meets – over estimate Issue a full contract in advance of commencing

negotiations Make use of technical sub-group meetings to inform

negotiation meetings

Page 11: Oxfordshire Clinical Commissioning Group Contracting to support integration for mental health and older people Oxfordshire CCG’s approach to contracting

OxfordshireClinical Commissioning Group

Contacts OBC Programme Lead:

Catherine Mountford [email protected]

Head of Contracting and Procurement Hannah Mills

[email protected]

Page 12: Oxfordshire Clinical Commissioning Group Contracting to support integration for mental health and older people Oxfordshire CCG’s approach to contracting

OxfordshireClinical Commissioning Group

Outcomes and metrics for mental health

Outcome Proposed metric

People will live longer Mortality rate of people with SMI

People will improve functioning Recovery star; progress through PbR clusters; effective discharge

Timely access to support Emergency response: 2 hours

Carers will feel supported Surveyed on case review

People will have a meaningful role People in paid work, structured volunteering and structured education

People will have stable accommodation

People in settled home, including on supported housing pathway

People will have better physical health

Reduced used of urgent care pathway; “normal” BMI; smoking reduction