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Working with EM Care Home Associations

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East Midlands Continuing Care Collaborative Procurement

[NCA/DCHA Joint Event]

23rd March 2010

By Chris Spark – Assistant Director of Procurement

Working with E. Mids Care Home Associations

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Objectives for our session

To Introduce re:source Procurement Hub

To Highlight Some Achievements

Introduce the Continuing Care Project

Questions


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Supply Chain Excellence Programme Annualised Savings Target of over £500M by end 2007/08

Collaborative Procurement Hub

savings target £270m

National Contracts Procurement – Savings

target £240m

NHS consumables supply chain & procurement

service

NHS Purchasing & Supply Agency reorganisation

Addresses £4bn of NHS PASA influenceable spend

Improve sourcing of national products through new national framework agreements

Encourage trusts to use new agreements

Addresses regional East Midlands NHS spend c. £1bn

Improved performance through collaboration with providers

Efficiency – procurement resources are focussed in the right areas

Restructure to deliver more effective and strategic national procurement

Meet future objectives of SCEP and Arms’ Length Bodies’ Review recommendations

Determine whether the most effective supply chain and procurement service for the NHS can be achieved by partnering with the independent sector

Why Are We Here?


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Our Purpose

Improve peoples’ lives through the delivery of

World Class procurement


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BD Plastipak Syringes – Collaborative Rebate

The Solution

An agreement with BD for a 17% rebate (cash back) for every Plastipak syringe purchased – based on hitting a regional usage target

Having engaged with trusts to standardise spend to BD the cash benefit totalled £288k

The challenge

No regional direction on syringe spend which offered best quality and value to the end user

Trust use many suppliers and supply routes – therefore, no leverage for negotiating volume based discount with suppliers


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Rehabilitation Project

60+ patients have been placed into a more clinically appropriate and less intensive care setting

Reduced the length of stay positively impacting the patient’s outcome and well-being

The release of bed capacity through more regular patient assessments and demand management

Cash releasing savings through more informed spending decisions matching the patients’ needs to the level and cost of care provided

Support for World Class Commissioning

Case study developed for future NHS leaders to showcase innovative procurement


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Continuing Care is big business

East Midlands region spend – c.£170m

Over 9000 service users

With over 1200 providers

Covering 9 PCTs


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…….but existing structures are flawedContract

No contracts in place over the majority of the region Providers and PCT's vulnerable to challengeSpecifications

No common specifications across the region Wide variances in care standards Providers and PCT's vulnerable to challengeQuality

No common Quality standards Disjointed/duplicated Quality monitoring Providers and PCT's vulnerable to challengePricing

No agreed pricing structures Pricing largely negotiated individually No agreed uplift mechanisms Providers and PCTs vulnerable to challenge


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The near future….


Contract

New DoH contract due in June NHS re:source/CHA’s lobbying DoH over contract formatSpecifications Common specifications almost complete for the region

anticipated issue April NHS re:source and ECCA lobbying for them to become

National standardsQuality

Common standards and tools to be adopted as part of new specifications. Anticipated April

PCT’s to share quality monitoring responsibilitiesPricing

Common structure under development Pricing based on Patient needs/Decision Support Tool scores Proposals to contain uplift mechanisms

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What is Any Willing Provider?


The AWP process involves a simple set of rules

Simple process to accredit appropriately qualified providers to deliver specific services to a specific market

It is not really a competition because there are many winners i.e. all the providers that meet the accreditation standards will be awarded a Contract

Our process requires:

Certainty of service

Certainty of cost & a payment regime

Certainty of contracting terms and no volume guarantees

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The AWP Process


NHS re:source publishes specification, quality and price schedules

Potential providers review schedules and agree terms (or not!)

NHS re:source allocates business to providers that have accepted terms

•Review process ongoing•Published on INTERNET•Notification by EMAIL

•Input via BRAVO web pages•Yes/No structures where poss.•Regional support forums

•Implementation options to be discussed by PCT Boards

July / August

November

2011

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...but we hope to be complete by Xmas


2.Set scope and participants

3.Sign off service specs & QMT

7. Advertise services; 8.Open AWP on BRAVO

Aug Sept Oct Nov Dec Jan2010

Feb MayApr

Go Live

4.Construct questions & framework of rates for AWP questionnaire

5.Design commissioners input process /support web pages

10.Evaluate

questionnaires

11.Summarise

findings

12.Inform Market who successful providers are

1.Evaluate provider market

Mar Jun Jul Aug Sep Oct Nov Dec Jan2011

6.Agree actual participants

9.Run AWP provider forums

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Help Us Help You


It is in all of our interests to rectify the commercial and quality structures surrounding Continuing Care

Help us to get it right by getting involved in the process of developing the right infrastructure

NHS re:source contacts:

Chris Spark Maninder Dulku Patrick Eastham

Or support via your local Care Home Association

15Greater Manchester Collaborative Procurement Hub – Delivering Supply Chain Excellence To Benefit Patients

…ensure our collective ability treats more patients, safely, with better outcomes

By working together we should…

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Questions

Thank you for listening, any questions?Working with E. Mids Care Home Associations

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