Market Shaping – Challenges and OpportunitiesDyane Aspinall – Assistant Director

Liverpool City Council March 2015

New Duties

From April 2015:

• Duty on LAs to facilitate diverse, sustainable and high quality services in their area

• Need for LAs and providers to help each other understand the future need and new types of support

• Duty on LAs to ensure continuity of care in the event of provider failure, regardless of whether someone pays for their care themselves, the LA pays for it or it is funded in any other way

Market Shaping

Supporting Independence

Quality Services

Choice Sustainability

Work with Partners

Market Facilitation

Market Shaping

Need

Service

Users

Informal Carers

Advocacy / support

groups

Health & Social

Care Staff

Provider Sector

Wider Citizens

Provider Failure

• Duty to meet people’s needs where a business has failed• From 6th April 2015, CQC take on responsibility for

assessing the financial sustainability of “hard-to-replace” care providers

• CQC will monitor financial health of organisations using a risk framework

• CQC will inform LAs of potential closures• Draft guidance for providers issued Jan 2015; final

guidance due late March 2015

Provider Failure & Market Shaping

• Need knowledge of local services in order to put alternative provision in place

• Need to know whether there is spare capacity in service provision

• Is service provision vulnerable because there is only one local supplier of the service?

• Undertake contingency planning • Role of CQC in identifying providers which are likely to be

subject to business failure

Key Challenges

• Wider and meaningful engagement with providers

• Changing the narrative – how do we move the discussion from cost – to outcomes & innovation

• Developing a shared commercial language - common understanding of price and risk-sharing

• LAs working together as ‘one council’ to support providers

• Workforce development - move from Commissioner to Market Developer / Facilitator

Liverpool’s Approach

• Review of Market Position Statement underway –move to a rolling programme of ‘chapters’ to be more responsive of market pressures

• Developing a ‘commissioning for people’ approach authority-wide to maximise approaches to market shaping

• Working with local CVS to undertake an analysis of financial sustainability, risk and performance of the sector

Liverpool’s Approach

• Ongoing dialogue with current providers regarding key commercial pressures, e.g. recruitment, price

• Developing a proactive approach to identifying risk factors for commissioned providers

• Formalising approach to managing provider failure – with potential for City Region approach

• Strong focus on engagement with market through innovation and collaboration

• Liverpool’s iNnovation Network launched July 2012

iNnovation Network

• Innovation is about implementing ‘new ways’ for ASC, not necessarily ‘inventing new ways’

• Given permission/ freedom by the leadership, including Elected Member support to ‘do things differently’

• Involving different sectors & developing different strategic links (not just health) i.e. economic development, academia and the SME Tech sector

• Dedicated staff time and small budget

iNnovation Network

• UKs 1st ASC Hack day October 2012 – Technologists & Practitioners

• Roundtables on: Personalisation, Dementia, Loneliness and Technology – important because they brought in different people to the conversation

• Speed Dating for Providers to promote new

partnerships

iNnovation Network:innovation partners

And many more…

iNnovation Network

Market Shaping with Independent Residential Care• Independent care homes make up around 50% of the

residential care capacity within Liverpool• With support these individual businesses incorporated and

developed a collective Sector-Led Development Vehicle, Care Home Partnership CIC

This enables them to:• Collectively procure items they all use i.e. bedding, cleaning

products• Pool highly qualified and expensive staff• Develop a more coherent strategic voice in negotiations

iNnovation Network

• Shaping the Mainstream

• Worked with LEP to jointly develop a project which worked with 300 older people from N. Liverpool to co-produce the tablet based Helping Hand app…

This has enabled:

• Meaningful access to internet shopping

for older people

• Increased digital literacy and social connection

• Strategic link with LEP informed European program of funding to include social innovation

iNnovation Network

• Collaboration Support

• A need identified by providers for an expert resource to support them building partnerships

• Invested in a dedicated contract to provide business and technical support for collaboration projects

• This has enabled:

• 9 collaborative proposals, some of which have gone live, others are piloting.

• Reshaping of floating support services

• A BME consortia that works with Chinese, Afro-Caribbean and Irish users through a commercialised service

iNnovation Network

E-health clusterStrong links to a vibrant digital / technology sector

This expertise has been introduced to the care sector to explore alternative service offers

Working with CCG to support the development of an e-health cluster – supporting technology market to engage with health and social care

iNnovation Network

Don’t Be Unlucky in Marketing

Support for providers to raise their own profile through better Marketing

Event bringing together providers and leading marketing agencies

Focus on marketing being a strategy for the business

Summary

• Market shaping duties and provider failure duties are an opportunity to refresh approaches to commissioning and engagement

• To be undertaken effectively – it will require resourcing, new skills and approaches

• Stakeholders want to engage with social care – but require support and a common language to do so

• To use innovation as a focus for market shaping requires permission to fail as well as celebrate success!!