AM 6Assessing risks and payment byresultsChair: Fiona Sheil, Public Services Officer, NCVONational Council for Voluntary O...
Fraser BattyePrinciple at GHK ConsultancyNational Council for Voluntary OrganisationsSustainable Funding Project
Payment by results: riskybusiness or a land of opportunity?NCVO Sustainable Funding Conference 2012              Fraser Ba...
This presentation is a whistle-stop tour of acomplex topic. It’s in two parts                   1) What is PbR?   2) Issue...
PbR is a form of outcomes-based commissioning   (Largely) past                         ‘Old’ (!)                 ‘New’    ...
So the intention is to focus on the difference thatservices make - not on what is done            Inputs          Outputs ...
At heart, the thinking behind PbR is simple:incentives matter                                       Change in           Ch...
PbR is being used as a mechanism for publicservice reform                                   “...it is not enough to pay so...
PbR is being tested in a range of policy / serviceareas                                                                  L...
‘PbR’ describes a range of different models(which can be blended)Results for...           Payments on...   Accounts for......
The debate on PbR is theory-rich and evidence-poor...it can be rather polarised"Payment by results should be              ...
PbR raises a series of important considerationsfor the VCS           For any given service, what do we mean by ‘result’? ...
ICF GHK has undertaken substantial work on PbR (advisory and                          evaluative); please get in touch if ...
Marcus RobertsDirector of Policy, DrugScopeNational Council for Voluntary OrganisationsSustainable Funding Project
Upcoming SlideShare
Loading in …5
×

Assessing risks and payment by results

423 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
423
On SlideShare
0
From Embeds
0
Number of Embeds
25
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Assessing risks and payment by results

  1. 1. AM 6Assessing risks and payment byresultsChair: Fiona Sheil, Public Services Officer, NCVONational Council for Voluntary OrganisationsSustainable Funding Project
  2. 2. Fraser BattyePrinciple at GHK ConsultancyNational Council for Voluntary OrganisationsSustainable Funding Project
  3. 3. Payment by results: riskybusiness or a land of opportunity?NCVO Sustainable Funding Conference 2012 Fraser Battye 28th November July 2012
  4. 4. This presentation is a whistle-stop tour of acomplex topic. It’s in two parts 1) What is PbR? 2) Issues raised for the VCSicfi.com | ghkint.com
  5. 5. PbR is a form of outcomes-based commissioning (Largely) past ‘Old’ (!) ‘New’ model of commissioning commissioning provision State sees a need State sees a need State sees a need State commissions State commissions State works out the service what to do ‘Outcome’ based Monitoring of inputs payment State provides and outputs serviceFundamental point: PbR is not perfect, how does it compare icfi.com | ghkint.com alternatives? relative to 1) What is PbR? 2) Issues raised
  6. 6. So the intention is to focus on the difference thatservices make - not on what is done Inputs Outputs Outcomes Resources Services provided Results: changes inneeded / consumed condition / outlook / People supported knowledge etc An attractive proposition: only paying insofar as services are effectiveicfi.com | ghkint.com 1) What is PbR? 2) Issues raised
  7. 7. At heart, the thinking behind PbR is simple:incentives matter Change in Change in PbR policy commissioning provider / contracts incentives Improved Change in Better VFM outcomes for service users deliveryicfi.com | ghkint.com 1) What is PbR? 2) Issues raised
  8. 8. PbR is being used as a mechanism for publicservice reform “...it is not enough to pay someone to provide a service with the only recourse being that if they fail they will not be re-awarded the contract. In these cases it makes sense to build in an element of payment by results to provide a constant and 15 references tough financial incentive for to ‘payment by providers to deliver good services results’ throughout the term of the contract.”icfi.com | ghkint.com 1) What is PbR? 2) Issues raised
  9. 9. PbR is being tested in a range of policy / serviceareas London Smoking Reducing Cessation Peterborough Reoffending Prison (SIB) Programme Children’s Centres Pilots Work Drug Programme Rehabilitation Troubled Families ESF Physical Activity Programmesicfi.com | ghkint.com 1) What is PbR? 2) Issues raised
  10. 10. ‘PbR’ describes a range of different models(which can be blended)Results for... Payments on... Accounts for... Incentives for... ...a % ...populations ...outcome ...systems increment ...individuals ...output ...the whole ...individual contract staff icfi.com | ghkint.com 1) What is PbR? 2) Issues raised
  11. 11. The debate on PbR is theory-rich and evidence-poor...it can be rather polarised"Payment by results should be "The NAYJ does not however accept thatimplemented across the public sector a case has been made for the benefits ofwithout exception – where it exists PBR and is concerned the introduction ofalready, it should be made more the profit motive and market mechanismsforceful and sophisticated, where it may have potentially deleterious effectsdoes not exist, it should be on the experience of, and outcomes for,introduced with very limited children who come to the attention of thetransitional periods." youth justice system.“KPMG ‘Payment for Success’ National Association for Youth Justice position paper"Our review of UK and international research evidence found few rigorous evaluations of PbR and no complete, systematic analysis of its effectiveness.” Audit Commissionicfi.com | ghkint.com 1) What is PbR? 2) Issues raised
  12. 12. PbR raises a series of important considerationsfor the VCS  For any given service, what do we mean by ‘result’? How is this to be measured?  Are your commissioners properly equipped for PbR?  Are you? PbR needs good outcome data  What about cash flow (post-outcome payment) and rates of success (no outcome, no payment)? Can risk be properly priced in?  Is the VCS destined to life at the end of a supply chain, or is there the willingness / capacity to lead?icfi.com | ghkint.com 1) What is PbR? 2) Issues raised
  13. 13. ICF GHK has undertaken substantial work on PbR (advisory and evaluative); please get in touch if you would like to know more:icfi.com | ghkint.com fraser.battye@ghkint.com / 0121 2338900
  14. 14. Marcus RobertsDirector of Policy, DrugScopeNational Council for Voluntary OrganisationsSustainable Funding Project

×