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ADASS finance workshop

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by Paul Johnston, Impact Change Solutions

by Paul Johnston, Impact Change Solutions

Published in: Health & Medicine, Business
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  • 1. ADASS Finance Workshop: Financial Implications of the Care Bill Paul Johnston Impact Change Solutions
  • 2. This session… • Overview of Care Bill • Financial implications • Threats, Challenges & Opportunities • Priorities for the ADASS Commissioning Project
  • 3. Social Care Funding Reform  National deferred payments from 2015/16 – can defer fees or repay earlier if they choose  20 March 2013 Budget announcement (response to Dilnot Commission):  Cap on care costs for older people of £72,000 – direct costs of care only – from 2016/17  Changes to the asset limits used for means testing – upper limit changing from current £23,250 to £118,000 in 2016/17 and lower limit changing from current £14,250 to around £17,000 in 2016/17  Different limits/application for younger adults  Local authorities will be required to implement Care Accounts for each individual and report/monitor progress towards the cap
  • 4. Source: London Councils, January 2013
  • 5. Spending Round 2013 10% cut in LG funding (equates to a 2.3% reduction in spending) £200m transfer NHS to LG (in 2014/15) H&SC Pooled Budget £3.8bn Transition Fund £335m £200m Troubled Families Program £100m Collabora tion & Efficiency Fund
  • 6. A New Funding Formula  DH commissioned project to develop new funding formula(e), capable of being used from 2015/16 for distribution of: 1. The introduction of the universal deferred payments scheme from 2015/16 2. The introduction of a cap on reasonable care costs and additional financial protection for people in residential care from 2016/17 3. DH specific grants and NHS funding for social care  Also available for consideration as part of the next reset of the business rates retention scheme, currently planned for some time after 2019/20
  • 7. Other Care Bill Challenges? • Funding Reform • Managing demand – Information & Advice – Promoting health & wellbeing – Prevent, delay, reduce needs – Assessment & eligibility • Integration – Not just with Health! • Market Facilitation – Market Analysis – Market Oversight & Sustainability – Procurement, Supplier Relationships, Quality & Outcomes
  • 8. Managing the Challenge Integration • Client needs • Geographic • Structural • Functional • Financial • Systems • Cultural Operations • Efficiency • Prioritisation • New delivery models • Outsourcing • LATC • Social Enterprise • Shared Services Category Management • Strategic Commissioning • Procurement hubs • Supplier Relationship Management • Impact of personalisation? Public Health • Demand Management • Promotion (Public Health Grant) • Information • Prevention • VCS & community resources
  • 9. Local Priorities? Preparing for Change: • Funding Reform • Managing demand – Information & Advice – Promoting health & wellbeing – Prevent, delay, reduce needs – Assessment & eligibility • Integration – Not just with Health! • Market Facilitation – Market Analysis – Market Oversight & Sustainability – Procurment, Supplier Relationships, Quality & Outcomes
  • 10. Summary • Care Bill does nothing in the short term to alleviate demand pressures – Reinforces the expectations of a preventive system with a focus on maintaining health and well-being – Aspires to better outcomes for all – Funding reforms are cost-neutral at best • Clear signal for closer integration • Change needed to prepare, adapt, meet the challenges • Preparations need to start immediately!

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