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One Budget, One Care: Should the UK adopt a single health and care system? Twitter: #onebudget June 25 th 2013
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One budget, one care should the uk adopt a single health and care system

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Page 1: One budget, one care   should the uk adopt a single health and care system

One Budget, One Care: Should the UK adopt a single health and care system?

Twitter: #onebudget!

June 25th 2013!

Page 2: One budget, one care   should the uk adopt a single health and care system

  Chair: Andrea Sutcliffe, Chief Executive, Social Care Institute for Excellence!

  Rt. Hon Stephen Dorrell MP, Chair, Health Select Committee!

  James Lloyd, Director, Strategic Society Centre!  Dan Gascoyne, Assistant Director for Corporate Policy,

Strategy and Partnerships, Essex County Council!  Matthew Flinton, Director of Legal and General Counsel,

Bupa UK!

Page 3: One budget, one care   should the uk adopt a single health and care system

Rt. Hon Stephen Dorrell MP

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James Lloyd Director Strategic Society Centre

Page 5: One budget, one care   should the uk adopt a single health and care system

…Who’s talking about integrated care?

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Everyone…   Health Committee: Report on Social Care

(2012)!  Department of Health!  Labour Party – Independent Commission

on Whole-Person Care, under Sir John Oldham!

Page 7: One budget, one care   should the uk adopt a single health and care system

…What does integrated care mean?

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Everything…   Multiple meanings have created confusion, but…!  Single assessment processes!  Integrated care pathways!  Joined up working among providers!

  DH plan for ‘joined up’ care by 2018!  Joint commissioning of health and care services!  Single providers of health and social care!

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All these models lie in different parts of the ‘integrated care matrix’…

  Source: Lloyd J and Wait S (2006) Integrated Care: A guide for policymakers

Provider(integra-on(

User(integra-on(

High%

High%

Low%

Low%

Models of integrated care can be located in different parts of this matrix

Page 10: One budget, one care   should the uk adopt a single health and care system

…What is the most radical vision of integrated care?

Page 11: One budget, one care   should the uk adopt a single health and care system

The ‘one budget’ approach…   The full merging of ‘health’ and ‘social

care’ budgets;!  + Housing!  + Mental health!

  One integrated budget for achieving an integrated outcomes framework, enabling the commissioning of integrated services.!

Page 12: One budget, one care   should the uk adopt a single health and care system

…Why have this conversation now? A simplified view of the health and

care system in England: ‘before and after’

Page 13: One budget, one care   should the uk adopt a single health and care system

N!H!S!

LA Care Budget!

Commissioner !

Services!

Outcomes! Outcomes!

Page 14: One budget, one care   should the uk adopt a single health and care system

Health Budget!

LA Care Budget!

Commissioner ! Commissioner !

Services! Services!

Outcomes! Outcomes!

Page 15: One budget, one care   should the uk adopt a single health and care system

Health Budget!

LA Care Budget!

Commissioner ! Commissioner !

Services! Services!

Outcomes! Outcomes!

Health & Wellbeing

Board!

Page 16: One budget, one care   should the uk adopt a single health and care system

…Why take a ‘one budget’ approach?

Page 17: One budget, one care   should the uk adopt a single health and care system

Various potential benefits…   End to cost-shifting between health vs. care

budgets!  End to arguments over defining types of need!

  Enable development of integrated, holistic services!  End to cost-shifting between service providers!  Enable fewer assessments, Less administration!  Better user experience!

Page 18: One budget, one care   should the uk adopt a single health and care system

Various potential benefits…   Incentives to invest in cost-effective social

care services!  Shift resources from ‘health’ to ‘social care’!  “Handrails, not falls treatment”!

  More space for innovation in practice and delivery !  E.g. development of new professional roles,

such as ‘Local Area Coordinators’!

Page 19: One budget, one care   should the uk adopt a single health and care system

But also some risks…   Resources may be pulled up to acute care!

 Hospitals important to politicians, so will still be a priority!

  Complexity, transition risks, etc.!  Others?!

Page 20: One budget, one care   should the uk adopt a single health and care system

...Why is there such interest in a ‘one budget’ approach now?

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Two factors are changing the agenda…

  Health and Wellbeing Boards present an opportunity!  Potential ‘structure’ for full single, sovereign,

integrated health and care budgets; !  Emergence of a ‘burning platform for

change’: the crisis in A&E/NHS pressures!  Blamed on division between health and care

system!  Also blamed on social care budget shortfalls,

which could be met from NHS resources!

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…So, do Health and Wellbeing Boards really provide the big

opportunity for one, integrated budget?

Page 23: One budget, one care   should the uk adopt a single health and care system

Yes…   Does not require complete reorganisation of local

government financing;!  Local authorities can ‘devolve’ practical responsibility

for meeting their duties!  Shift lots of CCG and Local Authority social care staff

to enlarged ‘Health and Wellbeing Commissioning Boards’!

  Each local HWCB can proceed at own pace!  No top-down change forced through !  In line with development of integrated services by

providers!

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But…   Still lots of questions/issues to address!

  HWCB legal structure likely requires enhancement through primary legislation at Westminster!

  HWB experience so far is mixed!  Resistance to giving up sovereignty and money!  So, ‘one budget’ approach would still need a push

from Westminster?!

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What could “Health and Wellbeing Commissioning Boards” do?...

Page 26: One budget, one care   should the uk adopt a single health and care system

Health Budget!

LA Care Budget!

Commissioner ! Commissioner !

Services! Services!

Outcomes! Outcomes!

Health & Wellbeing

Board!

Page 27: One budget, one care   should the uk adopt a single health and care system

HWCB!

One Budget!

Services!

Outcomes!

Page 28: One budget, one care   should the uk adopt a single health and care system

So what are the issues we need to be thinking about?...

Page 29: One budget, one care   should the uk adopt a single health and care system

Many, but three I want to flag…   Integrated service providers!  Personal Budgets!  Partnership between individual and state

in paying for “social care”!

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Integrated service providers…   To be truly worthwhile, ‘one budget’ approach

needs integrated providers!  Providers able to take a holistic ‘whole person’ view of

person and needs!  But this is a major challenge to providers:!

  How quickly can providers respond?!  On what basis will they be happy to be

commissioned?!  Is the regulatory framework ready?!

Page 31: One budget, one care   should the uk adopt a single health and care system

What is the Personal Budgets issue for the ‘one budget’ approach?...

Page 32: One budget, one care   should the uk adopt a single health and care system

Health Budget!

LA Care Budget!

Commissioner ! Commissioner !

Services! Services!

Outcomes! Outcomes!

Page 33: One budget, one care   should the uk adopt a single health and care system

Health Budget!

Personal Budget!

LA Care Budget!

Commissioner ! User commissioner !

Commissioner !

Services! Services!Services!

Outcomes! Outcomes! Outcomes!

Page 34: One budget, one care   should the uk adopt a single health and care system

Personal Budget!

User commissioner !

HWCB Commissioner !

One Budget!

Services!Services!

Outcomes! Outcomes!

Page 35: One budget, one care   should the uk adopt a single health and care system

Questions for Personal Budgets and ‘one budget’ approach…   How would Personal Budgets be determined

under a ‘one budget’ approach? And ‘choice and control’ preserved?!  Local authority Resource Allocation Systems (RAS)

for social care already a contested area!  Unclear how RAS could be used to determine

Personal Budget when HWCB is commissioning for single integrated outcomes framework from a single budget!

  More difficult to determine £RAS on basis of services available in different market?!

Page 36: One budget, one care   should the uk adopt a single health and care system

And so… what about long-term care funding?

Page 37: One budget, one care   should the uk adopt a single health and care system

Health Budget!

LA Care Budget!

Commissioner ! Commissioner !

Services! Services!

Outcomes! Outcomes!

Page 38: One budget, one care   should the uk adopt a single health and care system

Health Budget!

LA Care Budget!

Commissioner ! Commissioner !

Free services!

Means tested services!

Outcomes! Outcomes!

Page 39: One budget, one care   should the uk adopt a single health and care system

Option 1: Scrap all means testing…   Very expensive, despite emerging efficiency

savings from ‘one budget’ approach;!  Social care will never be ‘free at the point of use’

like NHS;!  Why? If everyone in residential care receives the LA

‘usual cost’ rate as cash-based Personal Budget, untenable to prevent private ‘top-ups’!

  Current ‘self-funders’ would use additional LA money to pay more and get more!

  Implications for care market, prices and inflation!

Page 40: One budget, one care   should the uk adopt a single health and care system

Option 2: Retain means testing and charging framework, but adapt it…   Individuals charged for services proportional to

means!  But which services? !

  ‘One budget’ approach seeks to blur boundaries between health vs. care needs, services and costs!

  Plus, in context of ‘one budget’, most cost-effective way to distribute resources may not be to retain care eligibility thresholds and means tests for what was once known as ‘social care’;!  Why? May be cheaper to provide free ‘care’ services to “rich”

people if it keeps them out of hospital.!

Page 41: One budget, one care   should the uk adopt a single health and care system

…And what about how state and individuals pay for care?

Page 42: One budget, one care   should the uk adopt a single health and care system

‘Capped cost’ reforms…   Dilnot Commission published recommendations in July

2011!  Proposed significant changes to current means tested

system in England!  Core principle: only the state can protect individuals from

‘catastrophic’ care costs!  Government has committed to implement ‘capped

cost’ reforms from April 2016!  ‘Cap’ on notional accumulated ‘Personal Budgets’ that

wealthy individuals are excluded from by LA means test!

Page 43: One budget, one care   should the uk adopt a single health and care system

‘One budget’ and the ‘capped cost’ reforms’…   ‘One budget’ approach seeks to breakdown distinction of

health vs. care needs, costs and services!  So, current local authority FACS (Fair Access to Care Services)

eligibility framework and RAS systems will need to be completely reworked to enable ‘one budget’ approach. !

  However, these frameworks/systems are building blocks of ‘capped cost’ reforms for metering costs of care in the community;!

  So, the ‘capped cost’ reforms cannot be implemented in current form under ‘one budget’ model. !

  Need to rethink how to apply the ‘capped cost principle’ in context of one budget approach?!

Page 44: One budget, one care   should the uk adopt a single health and care system

Conclusions…

Page 45: One budget, one care   should the uk adopt a single health and care system

Conclusions…   A&E crisis + HWB framework + political

consensus may be tipping point for radical integration of health and social care spending!

  But huge questions for Personal Budgets, integrated providers, definitions of need, and potential for unintended consequences!

  Opens up again question of ‘partnership’ between individual and state in paying for what was previously known as ‘care and support’.!

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Dan Gascoyne Assistant Director for Corporate Policy, Strategy and Partnerships Essex County Council!

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Strategic Society Centre Debate

25th June 2013 Dan Gascoyne Assistant Director for Corporate Policy, Strategy and Partnerships, Essex County Council

Page 48: One budget, one care   should the uk adopt a single health and care system

•  Partners across Essex, Southend and Thurrock have long supported the development of Community Budgets as a means of improving local outcomes and have worked to shape the concept since its inception.

•  In December 2011 partners submitted a successful expression of interest to become one of four Whole Place Community Budget pilots.

•  Following selection we’ve worked with secondees from central government to co-design proposals for sustained system-change in local public services through our Whole Essex Community Budget (WECB) programme.

•  Operational Plan submitted 31st October 2012 •  Proposals developed during the pilot phase will deliver total cumulative

net benefits worth £388m to 2019-20 of which £118m will be direct cashable savings.

•  In March 2013 resources were committed to detailed implementation plans and governance to deliver these proposals and develop further opportunities.

2

Whole Essex Community Budget: background

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Overview of public sector spending Essex

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Moving from business cases to phased implementation

4

Group 1 •  Relationship to other boards i.e SELEP and gateways •  Don’t duplicate •  The board needs to look across other partnerships to address whole system issues •  Cant proliferate more structure should commission from e.g subgroups •  Need to focus on fewer key issues and avoid overlap/ duplication •  Customer join-up and communication •  Housing could be a key area to grasp, utilising existing groups •  Focus on customer journeys and priorities and how to supress demand •  Discipline is needed to avoid getting side tracked •  Focus on the areas where partners agree to make progress •  "Partnership" rather than "integration" •  Allow time for engagement with the right partners eg PCC/ CCGs •  Bilateral agreements will continue •  Focus on public ownership vs organisational ownership •  Need to enable great community resilience, people preparing to manage their own costs •  EIB brokering relationships across key issues e.g Health Social Care integration •  Assets - lots of work but what's the way into it? Care needed around the level of financial benefit likely •  Dealing with realities of government cuts in real terms Group 2

Monitor Delivery of WECB •  Information sharing mechanism to drive •  Communication •  Forward plan flows from the above •  Prove we could do more by delivering what we've planned Group 3

Integration and influence on issues affecting District Councils/ County and other parties ie Education Early intervention: Reducing "dependency culture" - reactive budgets/ demand

•  Narrative - Benefit of work for whole community Impact on multiple issues

•  Systems changing project •  Focus of Public Sector spend - initially £2bn, wider total spend £10bn?

WECB Programme Overview

Health and Wellbeing

Integrated Commissioning

1"

Economic Opportunity

Skills for Growth 2"

Community Safety

Reducing Reoffending

Reducing Domestic Abuse

Family Solutions

(FCN)

3"

4"5"

Strengthening Communities 6"

Essex Deal For Growth

Social Investment 7"

Housing – new project

Page 51: One budget, one care   should the uk adopt a single health and care system

5

Integrated commissioning differs from existing joint commissioning arrangements as follows:

Stakeholders"

Ambi8on"

Governance"

Scale"Margins( Mainstream(

Single(Service(Mul1(Service(and((Systemic(Change(

individual((“charisma1c‟(

lead(

system8wide,((transparent(governance((

and(accountability((

Few( Many(

Joint"Commissioning"

Integrated"Commissioning"

Page 52: One budget, one care   should the uk adopt a single health and care system

6

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Summer 2012 - OBC

7

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Where are we now?

8

•  Domestic Abuse – Alan Ray •  Strengthening Communities – Jasmine Frost •  Housing -

Project Project overview Update

Integrated Commissioning

Driving forward strategic integration across the Health and Social Care system in Essex. Led by the Essex Health and Wellbeing Board.

•  All 5 Essex CCGs have produced Integrated Plans which set out how they will deliver QIPP (Quality, Innovation, Productivity and Prevention) and how they will work with ECC on integrated commissioning this year and in the future.

•  As part of ECC transformation 5 joint posts are being recruited to, covering each of the five Essex CCG areas

•  Partners working to define the ‘end state’ and how we will get there and commit the capacity to progress the work programme at pace, agreed programme management approach.

•  Integrated Care Pioneer proposals being developed to support direction of travel

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Outline framework to progress integrated commissioning has been agreed by partners across Health and Social Care. Shaped through five key service areas:

•  Older People •  Mental Health •  Learning Disabilities •  Children’s Services •  Public Health

9

2013/14 Commissioning Framework

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10

Indicative Commissioning levels & leads (tbc)

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11

Principles*

Our work on integrated commissioning is guided by the principles that:

•  services are commissioned based upon customer needs •  where possible, they should be local and easily accessible •  addressing the needs of whole communities •  with an emphasis on prevention and early intervention •  organisations will share resources to maximise value for money •  sharing equally the responsibility for risk •  ensure service quality underpins decisions to allocate resources

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Benefits

We expect our approach to deliver the following benefits: •  Realising economies of scale and providing services at lower cost •  Improving outcomes by tackling entrenched problems •  Greater focus through prioritisation •  A more stable planning cycle •  Less complexity through clearer governance and accountability •  Streamlined pathways with reduced duplication •  A shared language and common understanding of purpose •  Greater responsiveness to community and individual needs •  Increased service provision in preferred settings e.g. community •  Ability to focus on preventative approaches to service delivery •  Innovation through working across agency and professional silos.

"12

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Programme Cost / Benefit - summary

New Investment Costs Cumulative Benefits to 2019/20

2013/14 Further

Implementation (to 2019/20)

Net Cashable Non-Cashable Total benefits

Project £'000 £'000 £'000 £'000 £'000

HWB - Integrated Commissioning 359 tbc

-91,971 0 -91,971

* exemplar only

Family Solutions 1,583 10,258 -29,112 0 -29,112

Domestic Abuse 370 1,800 49 -4,059 -4,010

Reducing Reoffending 178 1,008 1,186 -113,615 -112,429

Skills 47 90 137 -151,588 -151,451

Strengthening Communities 650 tbc 650 tbc 650

Social Investment 450 tbc 450 tbc 450

3,637 13,156 -118,611 -269,262 -387,873

Opportunity Costs 3,835 14,199

Total 7,472 27,355

Page 60: One budget, one care   should the uk adopt a single health and care system

Some key messages

1.  Community budgets should be focused on sustainable system-change: they have the potential to bring about wholesale system-change in public services: joining-up and co-ordinating services, streamlining processes and improving citizens’ experiences.

2.  Community budgets should focus on shared outcomes rather than pooled budgets: there are risks associated with the creation of a single funding pot. A focus on shared outcomes and integrated commissioning, rather than on the mechanics of pooled budgets, is what’s needed.

3.  Community budgets are a tool to change culture: This offers great value and requires local innovation and greater flexibility within Whitehall and local partners. Policy frameworks established by central government departments must be flexible if they are to support, rather than limit local system-change

4.  Government should not seek to artificially limit the scope of community budget activity: focusing proposals on social outcomes is not enough – economic outcomes are equally important and complementary to prevention.

14

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•  Dedicated resources, robust programme management & governance – invest to save, for the long run

•  Clear understanding of place: priorities, leadership, behaviours •  Importance of focus •  Genuine co-design – locally and nationally •  Understanding sovereignty •  Deep, lasting engagement and ownership from key stakeholders •  Willingness to flex, adapt and connect with a dynamic system e.g.

12/13 - NHS reforms; PCC; Heseltine; Transforming Rehabilitation; ECC TMII; Integrated Care; etc

15

Making a community budget successful

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16

!“The only way the world is going to address social problems is by enlisting the very people who are classified as ‘clients’ and ‘consumers’ and converting them into co-workers, partners and rebuilders of the core economy.” Professor Edgar Cahn, US civil rights lawyer and inventor of time banks.""

www.wecb.org.uk www.communitybudgets.org.uk

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Matthew Flinton, Director of Legal and General Counsel, Bupa UK

Page 64: One budget, one care   should the uk adopt a single health and care system

Questions for discussion…   Integration choices – can real efficiency savings be achieved from joint

commissioning, or will they only really be possible from full merging of health and care budgets to enable a single budget with a single commissioner?!

  Budget pressures – is integration of health and care budgets made easier, harder or inevitable by the unprecedented budget pressures confronting the health and social care systems over the next decade? !

  Implementation – how would a single health and care budget be created from the new structures in the NHS and local government? Do Health and Wellbeing Boards provide the key?!

  Defining need – would a single budget for health and care retain distinctions between health and care needs, or just focus on commissioning services for outcomes?!

  Paying for care – what, if any, services would individuals be charged for under a single health and care budget? Would social care still be means tested?!

  Capped costs – what do radical models of integrated commissioning and funding mean for the government’s plans to cap people’s care costs?!

Page 65: One budget, one care   should the uk adopt a single health and care system

!!!!!!Strategic Society Centre 32-36 Loman StreetLondon SE1 0EH Tel. 020 7922 7732 [email protected]!www.strategicsociety.org.ukTwitter: @sscthinktank !The Strategic Society Centre is a registered charity (No. 1144565) incorporated with limited liability in England and Wales (Company No. 7273418).!