Workshop A -Commissioning Finance

Danny Storr – Head of Finance NHS Hull Clinical Commissioning Group

•So what is Commissioning

•Accountabilities and Responsibilities

•Financial Duties for Commissioners

•The main challenges for commissioning

•What does the future hold

jCONTENT

“It is the process by which commissioners identify the health needs of their population and make prioritised decisions to secure care to meet the needs within available resources.”

jSo what is commissioning?

jSo what is commissioning?

How the PCT spends its money:

jSo what is commissioning?

Area of Spend %

Acute Contracts (inc specialised) 44%Primary Care, Dental, Pharmacy, Ophthalmic 16%Non-NHS Healthcare Contracts (inc reablement) 13%Primary Care Prescribing 10%Mental Health & Learning Disabilities Contracts 7%Continuing Healthcare 4%Ambulance Contracts 2%PCT Running Costs 2%Other 2%Total 100%

cfS

The Old Structure

Accountabilities and Responsibilities

The New Structure

Accountabilities and Responsibilities

•Responsible for spending tax payers money

•Responsible for achieving value for money i.e getting the most out of every £ spent

•Standing Financial Instructions govern the rules

jAccountabilities and Responsibilities

•Remain within revenue and capital resource limits

•Not to spend more cash than we are allocated i.e. not to be overdrawn at the bank

•To pay 95% of invoices with 30 days

•To remain within running cost (previously management cost) targets

•Submit statutory returns (annual accounts & audit)

jFinancial duties for Commissioners

Major financial challenges in Commissioning

Exercise

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Some of the challenges:

•How the funding will be divided across the new system•Hitting financial targets (either way)•Prioritising which areas of health to spend resources•Dealing with conflicting demands (long term v short term)•Market Management / behavioural changes•Clinical Engagement (all above)•Delivering QIPP agenda•Coping with change

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Dealing with the challenges:

•Strategic direction set by the Board (using Public Health Science)•Well structured planning process (start early)•Engaging stakeholders in development of services•Effective budgetary control procedures (plan A,B, C…)•Good relationships with providers•Good lines of communication throughout the organisation and with the public•Strong understanding of cost drivers and knowledge of contracts•Teamwork

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• PCTs and SHAs will be abolished

• NHS Commissioning Board created

• Clinical Commissioning Groups created

• Commissioning Support Services created

• Local Authorities / Public Health England altered / created

• Property Services Ltd created

jWhat does the future hold?

Commissioning of services from April 13 will be as follows:

•Public Health commissioned by local authorities NHS CB and PHE

•Primary Care commissioned by NHS CB

•Specialist Services will be commissioned by NHS CB

•Everything else will be commissioned by CCGs

•Estates managed by Property Services Ltd

jWhat does the future hold?

Questions???

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