The Year of Care Funding Model. Sir John Oldham

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The Year of Care Funding Model Sir John Oldham (c)sir John Oldham 2013

Multimorbidity is common in Scotland The majority of over-65s have 2 or more conditions, and the majority of over-75s have 3 or more conditions More people have 2 or more conditions than only have 1

(c)sir John Oldham 2013

(c)sir John Oldham 2013

Team A Team B Team C Team D? (c)sir John Oldham 2013

(c)sir John Oldham 2013 Integrated neighbourhood Care Team

Primary drivers Systematic risk profiling of population Integrated locality care teams including social care, community services, allied health professionals and general practice Maximising number of patients who can self manage through systematic transfer of knowledge, and care planning

Long Term Care Development Programme 30 million coverage Earlier results than expected; Liverpool, Leeds, Warwickshire, Solihull, Isle of Wight, (Greenwich) etc Milestone markers indicating significant wave of achievement within 6 mths

Problem with PbR Incentivises admission and hospital care Can create adversarial environment between organisations Can lead to rushed discharges, and frequent readmissions Exascerbates the fragmented response

What we wish to do Encourage co-operation across organisational boundaries Create joint ownership of outcome measures Incentivise care in the community rather than hospital Create flexibility for commissioners in the use of resources

The Year of Care Funding Model The Purpose: Create financial flows and incentives that reinforce the care model of co-ordinated, integrated care. By: Developing an annual risk adjusted capitation budget based on these levels of need. Develop In partnership with health economies in close to real life circumstances shadowing real data

What Long term conditions should be included The National Project Team Propose that the long term conditions included should be based on the Scottish School of Primary Cares Multimorbidity Research Programme (excluding schizophrenia.) These long term conditions are: Coronary Heart Disease Hypertension Heart Failure Stroke/Transient Ischemic Attack Diabetes Chronic Obstructive Pulmonary Disease Cancer as long term care (not chemo/radiotherapy) Depression Dementia

Scope of the Year of Care Funding Model

4 key elements Identifying and supporting people with long term conditions Developing costed pathways of need Commissioning and contracting of the model Systems architecture

Achieving the future state Primary Drivers Secure and Maintain agreement to test the implementation of the Year of Care Funding Model Identify and agree a model for effective stakeholder collaboration Define methodologies and currencies to establish costs Define current spend on LTCs Cost future pathway Define Year of Care budget according to agreed scope of patient cohort and services Agree a high level strategic vision and direction Identifying and supporting patients Identify population that would benefit from this model Define and agree a set of locally owned outcomes Agree categories of support Developing contracting mechanism Develop commissioning mechanism Agree an integrated needs led assessment framework Integration for care coordination Needs Assessment Define typical pathways per category of support LTC Year of Care Funding Model Costings Information Data Quality Practical Implementation Define the Year of Care Budget and Costing Pathways Commissioning & Contracting Systems architecture

The Proposed Timeline April 2012 March 2013: April 2013 March 2014: April 2014 March 2015: April 2015 March 2016: Test implementation of the model Shadow year of care currencies, and development of national pricing model National LTC year of care currencies and shadow national prices National LTC year of care prices

Selection of patients : All patients within the top 10% of risk scores for the population at the beginning of that year, who also have one of the long-term conditions on the 'Scottish list' Plus any patient known to the Integrated Care Team because of complex functional needs (these need not also be part of the top 10% of risk scores) The only restrictions are: Children and adolescents (< 19 years) should not be included

Included services Acute services: All Admitted Patient Care (inpatient), Outpatient and A&E activity (but see exclusions below), including all rehabilitation, palliative care, end-of-life care and telehealth. This includes any unbundled parts of spells or outpatient activity (again, see exclusions below) This should include all acute care for patients, including those services delivered by out-of-area Providers Community services: All community services (although see exclusions below), including personal healthcare budgets, community prescribing, tele-health and continuing healthcare

Included services Mental Health services: All services commissioned by clinical commissioning groups Social Care services: Assessment, reablement and equipment only Primary Care services: No Primary Care services are included Services delivered by Voluntary and Independent Providers: Any service that matches a service description in one of the above included categories

Excluded services Acute services: Any activity that is commissioned directly by NHS England (including all specialised/prescribed services) Any activity that is part of the Maternity pathway payment Any critical care activity and exceptionally high cost drugs and devices All ordinary elective activity in surgical, paediatric, cancer or obstetrics and gynaecology specialties Ambulance services and any other transport service Any service covered by a block contract payment arrangement

Excluded services Community services: Accommodation costs in residential care and nursing homes Any part of personal healthcare budgets not delivered by an Acute, Community, Mental Health, Social Care, Independent or Voluntary Provider or Health or Social care services Mental Health services: Services commissioned directly by NHS England Social Care services: All services not described above, including all meanstested services Primary care services (for now)

Tariff categories For 2013/14, we recommend that Year of Care tariff category that applies to a patient is based upon the number of diseases recorded for each patient in the GP pay for performance programme. The tariff categories will be: Category 1-1 or 2 Clinical Domains Category 2-3 or 4 Clinical Domains Category 3-5 or 6 Clinical Domains Category 4 - more than 6 Clinical Domains

Contracting mechanism Lead provider and sub contractors - contract is just with one provider who subcontracts other elements Alliance contracting - equal partners - gainshare and painshare - tiers of quality achievement that require co-operation to deliver

Patient changes during year Tariff changes up or down within year absorbed within year Patients who are within the Year of Care currency at the beginning of the year, remain within the Year of Care currency for the whole year. Similarly, patients who are not within the Year of Care currency at the beginning of the year, remain outside the Year of Care currency for the whole year. The only exception to this rule is: Patients who die or transfer out of the health economy can be removed from the Year of Care cohort within year

Things you might want to know Will this replace current activity based hospital payments? Any patients on Year of Care will not be in the current activity based payment hospital system for those included services, but will for excluded services Will this replace 30 day readmission penalty? Yes for those patients who are in Year of Care tariff What is in it for patients? More co-ordinated pro-active care, What is in it for commissioners? Incentivising integrated delivery and out of hospital care for those patients driving 70% cost and activity What is in it for hospitals? Provides new opportunities for integrated care and reduces disturbance of elective work by unscheduled admissions in a risk sharing manner

Driver diagrams Identifying and Supporting Patients AIM PRIMARY DRIVERS Agree the LTC Cohort SECONDARY DRIVERS Identify population that would benefit from this model Agree method of using Risk Profiling Data to identify categories Agree sharing of data to support cohort To develop the system for identifying, assessing and classifying people with LTCs Agree an integrated needs led assessment framework Agree categories of support Agree common assessment tool Map assessed level of needs as categories of support Agree common assessment processes and people involved Agree categories: Numbers Definitions Understand profiles of categories Understand and allow for (progression/ deterioration) change in category of support Reflections: Define typical pathways per category of support Define units of care Agree buckets of care

Driver diagrams Commissioning and Contracting AIM PRIMARY DRIVERS SECONDARY DRIVERS Identify and align outcomes from national and local outcomes framework Define and agree a set of locally owned outcomes Define and agree core categories and individual outcomes Identify stakeholder leads for agreed outcomes Evaluate current baseline for agreed outcomes To develop the Commissioning and Contracting mechanism for the model. Reflections: Develop commissioning mechanism Developing contracting mechanism Clarify needs assessment and scope (from Identifying and Supporting Patients group) Develop, identify and agree a range of integrated service models to commission Develop an implementation plan including transitions from current to new Develop and implement a monitoring framework Design a mechanism for market development and market management Clarify tariff recommendations (from Identifying and Supporting Patients and Costing pathways groups) Develop. Identify and agree a range of integrated models for contracting that capture the local commissioning intentions Develop an implementation plan for contracting Develop and implement a contacting monitoring framework Develop the procurement strategy Identify and agree risk sharing arrangements

Driver diagrams Define the Year of Care Budget and Costing Pathways AIM PRIMARY DRIVERS SECONDARY DRIVERS Define organisations included/excluded Define current spend on LTCs Define total spend and split by organisations included/excluded Define services included/excluded Define spend by service included and excluded To define the year care budget and costing pathways. Reflections: Define Year of Care budget according to agreed scope of patient cohort and services Define methodologies and currencies to establish costs Cost future pathway Ensure clarity on the patient cohort Define service total by organisation and by service Define inclusions/exclusions by organisation and by service Understand activity levels and types of activity by provider Define consistent costing detail required Define basis for calculating costs Agree method for linking data Define units activity and unit cost Map cost of current pathway Review total spend against actual cost Impact assessment of future pathways Define unit costs of new ways of working Understand the RRR element of the pathways Define costs of pathways according to need

Driver diagrams Systems Architecture AIM PRIMARY DRIVERS SECONDARY DRIVERS Integration for Care Co-ordination Adopt NHS Numbers Shared care plan To develop the systems architecture for the model Costing Information Needs Assessment Directory of services Electronic summaries Practical Implementation Link with QIPP DTV Reflections:

Driver diagrams Secure and Maintain agreement to test the implementation of the Year of Care Funding Model AIM PRIMARY DRIVERS SECONDARY DRIVERS Identify and map stakeholders: Strategic Operational To secure and maintain agreement to test the implementation of the Year of Care Funding Model Identify and agree a model for effective stakeholder collaboration Agree a high level strategic vision and direction Agree governance and high level working arrangements Identify and agree high level benefits and risks Identify strategic stakeholder leads Develop communication and engagement strategy Obtain high level ownership of Year of Care Agree the mission statement/milestones/objectives Reflections: