Future payment systems in the NHS: capitated budgets and other innovations. Richard Murray Director of Policy, The King s Fund

Similar documents
Provider Payment: highlights from the evidence

Hip fracture Quality Improvement Programme. Update on progress one year on

South Warwickshire s Whole System Approach Transforms Emergency Care. South Warwickshire NHS Foundation Trust

SOCIAL IMPACT BONDS IN HEALTH

Sandwell Secondary Mental Health Service Re-design consultation

Clinical coding, data quality and financial assurance

Prime Contractor Model King s Fund Nick Boyle Consultant Surgeon 27 March 2014

Transforming NHS ambulance services

REPORT BY THE COMPTROLLER AND AUDITOR GENERAL HC 686 SESSION DECEMBER Department of Health. Progress in making NHS efficiency savings

Linking quality and outcome measures to payment for mental health

Transformation of Services and Care Pathway Redesign in the NHS: Further Reforms in Health Policy

Choice of a Case Mix System for Use in Acute Care Activity-Based Funding Options and Considerations

Urgent and Emergency Care Review - time to do it

Learning from best Practice. Musculoskeletal conditions as a health priority. The role of clinical networks

Our NHS, our future. This Briefing outlines the main points of the report. Introduction

Best Practice Tariff: Early Inflammatory Arthritis

BARIATRIC SURGERY SERVICES POLICY

Vertical integration: who should join up primary and secondary care?

Benchmarking variation in coding across hospitals in Canada: A data surveillance approach

Recognise and Rescue: A hospital wide collaboration to improve response to the deteriorating patient at Nottingham University Hospitals NHS Trust

FIVE TESTS FOR THE NHS LONG-TERM PLAN

Conversations in health care

The Community Crisis House model

Briefing paper on Systems, Not Structures: Changing health and social care, and Health and Wellbeing 2026: Delivering together

Vision 3. The Strategy 6. Contracts 12. Governance and Reporting 12. Conclusion 14. BCCG 2020 Strategy 15

Emergency admissions to hospital: managing the demand

A critique of Equity and Excellence: Liberating the NHS

Guideline scope Intermediate care - including reablement

The Movement Towards Integrated Funding Models

Developing ABF in mental health services: time is running out!

NHS Portsmouth CCG 2013/14 Contract Agreements Summary. Michelle Spandley Deputy Chief Finance Officer May Improving health services

NHS Digital Academy Experience and Advice from Cohort 1

Accountable Care Organisations in the United States

The operating framework for. the NHS in England 2009/10. Background

Scottish Government Modernisation Agenda BACPR Conference 2016

2017/18 and 2018/19 National Tariff Payment System Annex D: Guidance on currencies with national prices. NHS England and NHS Improvement

Mental healthcare: to payment with. outcomes and risk. share components. Mental healthcare: capitated approach to. payment with.

Luton Borough Council: Reducing DTOC rates attributable to Social Care

Developing Social Impact Bonds: Our experience in the South West

The Structure and Function of the NHS. Andrew Hughes

Integrated Health and Care in Ipswich and East Suffolk and West Suffolk. Service Model Version 1.0

NHS North Yorkshire and York

Implementation of the right to access services within maximum waiting times

What are ACOs and how are they performing?

North School of Pharmacy and Medicines Optimisation Strategic Plan

Pharmacists Defence Association Response to Health Education England s Consultation on Facing the Facts, Shaping the Future.

NHS performance statistics

Strategic overview: NHS system

Health and Social Care Select Committee report Integrated care: organisations, partnerships and systems

Criteria Led Discharge Pilot NHS Grampian. Whole System Patient Flow Improvement Programme

Quality Strategy

DRAFT. Primary Care Networks Reference Guide: Draft pre-release

HEALTHSOUTH CORPORATION

Alison Jamson, Head of Quality & Clinical Standards NHSMK&N Commissioning Support Hub

Revisions Version Date Section Reason for Change Approved by. Procedure Obsolete Date Reason Approved by

NHS performance statistics

Main body of report Integrating health and care services in Norfolk and Waveney

How to use NICE guidance to commission high-quality services

Developing an outcomes-based approach in mental health. The policy context

«Vers un système de santé national britannique centré sur le patient»

Quality Improvement Plan (QIP) Narrative for Health Care Organizations in Ontario

2017/ /19. Summary Operational Plan

KING S FUND RESPONSE TO CONSULTATION WIDER REVIEW OF REGULATION IN HEALTH AND SOCIAL CARE

Higher Education Funding Reforms. Clinical Placements

LEARNING FROM THE VANGUARDS:

Why Focus on Perioperative Services?

Pathology Quality Review : Outcomes and Update

Delivering an Integrated Urgent Care Service

Psychological Therapies for Depression and Anxiety Disorders in People with Longterm Physical Health Conditions or with Medically Unexplained Symptoms

NHS Providers Strategy Directors Network meeting Five Year Forward View and Vanguards - Birmingham Community Healthcare NHS Trust our story

SHEFFIELD TEACHING HOSPITALS NHS FOUNDATION TRUST EXECUTIVE SUMMARY REPORT TO THE HEALTHCARE GOVERNANCE COMMITTEE HELD ON 25 NOVEMBER 2013

Appendix 1: South Lanarkshire H&SCP Improvement Plan 2017/18.

Any Qualified Provider: your questions answered

SWLCC Update. Update December 2015

General Practice Commissioning Strategy Development

Consultation on draft health and care workforce strategy for England to 2027

A Draft Health and Care Workforce Strategy for consultation

An improvement resource for the district nursing service: Appendices

GOVERNING BODY REPORT

Summary report. Primary care

Other EU and non EU cases of ICTenabled Integrated Care and Independent Living

Andrea Croft RGN Lead Advanced Nurse Practitioner Anticoagulation. Welsh Nurse Director Thrombosis UK

Northumberland ACO. 29 January 2016 New models of care event

Integrated Care Systems. Phil Richardson NHS Dorset CCG

Understanding NHS financial pressures

Rehabilitation, Enablement and Reablement Review What matters to patients and carers?

Do quality improvements in primary care reduce secondary care costs?

GE1 Clinical Utilisation Review

Overview of a new study to assess the impact of hospice led interventions on acute use. Jonathan Ellis, Director of Policy & Advocacy

Reimbursement models: Lessons from the UK and the case for change. Presentation to 18 th Annual BHF conference

Cambridgeshire and Peterborough Sustainability and Transformation Plan / Fit for the Future Programme. Frequently Asked Questions Second Edition

Policy and Resources Committee 13 February 2018

Southern Adelaide Local Health Network CLINICAL RECONFIGURATION STAGE 3. March 2017

COMMISSIONING FOR QUALITY FRAMEWORK

The journey to integration

Outcomes based commissioning. Andrew Smith 11 February 2016

Transformation Programme Progress Report

Developing Plans for the Better Care Fund

TITLE OF REPORT: Looked After Children Annual Report

Pain Management HRGs

Transcription:

Future payment systems in the NHS: capitated budgets and other innovations Richard Murray Director of Policy, The King s Fund

Future payment systems in the NHS The English experience with payment systems Lessons learnt on payment system reform Future direction Conclusion

The experience with payment systems: mixed Example Impact Payment by Results CQUIN Best Practice Tariffs Evaluations showed a small-ish impact of around 0.5% p.a. reduction in length of stay Still awaiting evidence of impact Impact varied across the package, but some did show evidence of success - The results of payment reform have perhaps not lived up to earlier expectations - Design and implementation have proved hard and payment reform increasingly looks like a `long game - Monitor and NHS England have now embarked on a strategic review of PbR to ensure its fit for future purpose

Lessons learnt include Take a long-term perspective Inventing new indicators is hard Engage clinicians Is operationally meaningful Getting it right may well take more than one attempt Financial incentives can have unintended consequences

Future direction: extending current models There are existing tools within PbR that support integrated care and these are growing: e.g. the cystic fibrosis year of care tariff aims, `to allow specialist cystic fibrosis multidisciplinary teams to direct care in a seamless, patient centred manner, removing any perverse incentives to hospitalise patients who can be well managed in the community and in their home. Payment by Results Guidance for 2013-14, Department of Health. Feb 2013 But also integration appears in other pathway and best practice tariffs: - Maternity pathway tariffs - Parkinson s Disease Best Practice Tariff with a requirement for a Parkinson s Disease Nurse Specialist responsible for the coordination of care - post-discharge pathway tariffs which place the responsibility on the acute provider for post-discharge care in cardiac and pulmonary rehabilitation, hip and knee replacement

Future direction: new payment models `We are interested in learning from commissioners and providers that are implementing alternative payment approaches to enhance system-wide incentives for example to focus on integrated care. Alternative payment approaches might include pathway, capitation or outcomesbased payments 2014/15 National Tariff Payment System. Monitor/NHS England, Dec 2013. Key issues - Aims to align financial structure and incentives with a single integrated pathway for patients one budget and one payment. Monitor/NHS England trying to create a structure around new payment systems - But these novel approaches do not set aside the `lessons learnt from attempts to make financial systems more sophisticated and locally flexible - And as before, much of the devil lies in the detail: how well can outcomes be measured? Are clinicians engaged? Will there be unintended consequences? (capitation models can bring their own risks)

Conclusion Payment systems have not to date been a short cut to lower costs and better outcomes We need to be realistic about how much they can deliver and especially, how quickly They need to be part of the wider drive towards integrated care: underpinning, assisting and certainly not deflecting from the objective of more integrated care There is valuable experience from other attempts to use payments systems to change behaviour Looking to the future: - there is an increasing array of tools already within the existing PbR system to support integrated care though clearly still a long way to go - capitation offers some obvious attractions from the perspective of integrated care, but this does not set aside the caution from past attempts to use the payment system to fine tune incentives and/or bring about change