Payment By Results – The Provider Perspective

Recovery in our Communities

Payment By Results – The Provider Perspective

Karen Biggs Chief Executive Phoenix Futures

Recovery in our Communities

Cat is out of the bag!

• 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.’’

Payment by

Results

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

• Increased competition in the market

• Mergers and alliances

• Reduce Cost

• Plurality of models has implications for cost

• Already a very busy market

• No room for good small providers

• 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

Impact

High

HighLow

PbR Reduced public funding

Public Health England

Likelihood

Risk Map for the Strategy

Recovery in our Communities

Karen Biggs Chief Executive Phoenix Futures

[email protected]