Commissioning - Health Committee Contents


Examination of Witnesses (Questions 70 - 79)

THURSDAY 22 OCTOBER 2009

MR GARY BELFIELD, DR DAVID COLIN-THOMÉ, MR MARK BRITNELL AND MR DAVID STOUT

  Q70  Chairman: Good morning, gentlemen. Welcome to our first evidence session on our inquiry into commissioning. For the record, would you give us your name and the current position you hold.

  Mr Britnell: I am Mark Britnell. I am a partner and head of health for Europe for KPMG, latterly the Department of Health where I was Director General.

   Dr Colin-Thomé: I am David Colin-Thomé. I am the National Director for Primary Care, Medical Adviser to the Commissioning Directorate, former GP and fundholder.

  Mr Belfield: Good morning I am Gary Belfield. I am the acting Director General of Commissioning and System Management and before that I was Director of Commissioning in the Department.

  Mr Stout: I am David Stout. I am the Director of the Primary Care Trust Network, NHS Confederation. We are an independent voice for PCTs representing 95% of PCTs across the country. Prior to that, for six years I was the PCT chief executive in Newham in East London.

  Q71  Chairman: Once again, thank you and welcome. What gains to the NHS have there been over the last 20 years of the purchaser/provider split?

  Mr Belfield: I am happy to start on that, Chairman, having listened to the debate with the BMA. We have needed to have a purchaser/provider split. I do not think that we have put the support and the effort and development into the purchaser side that perhaps we should have done and we have put more into the provider side. When you have a system as complicated as the NHS, with £100 billion spend this year, you need to have a system of a tension between the purchaser and the provider. If you look at before we had the purchaser/provider split, we had a provider-dominated system, a hospital-dominated system from 1948 onwards, does not really focus—because it is not what they are set up to do—on long-term conditions, health inequalities and long-term health gain in the system. They look at the treat and the cure side. For me, it is really important that we do have this tension between purchasers and providers. The benefits we have had are going to be realised only recently. Listening again to the debate, it feels to me as if we have not really had commissioning until the last two or three years. We have had movement of money before that. I was in the NHS myself in the 1990s when purchaser/provider split first came in, and all we did as a hospital was argue about the money. We did not really talk about quality or improving care at the time. It is wrong to think there has been an improvement over the whole 20 years. I do not think there has, personally. It is only in the last two or three years that we have realised we need to help commissioners to become much stronger, to help them develop and to help them have an equal footing with providers so that we can have some tension in the system to improve care for the local population. The final point I would make is that we need to have somebody who is an advocate of the patient and the local population and also an advocate for the taxpayer. That is the key role of the purchaser, in terms of ensuring that we get a high quality of care for all but also good value for money.

  Q72  Chairman: Do you have anything to add?

   Dr Colin-Thomé: As you have heard, there has been little evidence to suggest that there has been a major change. I suppose the best evidence of change has been that because of targets there has been the biggest movement. But I suppose the real issue is that health services are extremely difficult to manage. That is an international issue. The previous model was arguably even more inefficient but it was focused too much on the clinical providers, and especially secondary care, which covers a tiny percentage of health care. We are searching for a better management approach. My feel on what we have got, even though the evidence is not currently strong, would be to have a separation and organisations looking at the healthcare needs rather than provider domination. I think that providers are not naturally the most objective people to be suggesting how health care should develop. They are a key part, but I think there should be much more objectivity about their effectiveness.

  Q73  Dr Stoate: Surely there is still a huge disparity in power. The fact of the matter is that the foundation trust hospitals, using payment by results, dominated the power structure in the NHS. PCTs have almost no freedom of movement whatsoever. In my local area when the hospitals ran into difficulty, the PCT came banging on the GPs doors to say that we have to save money. That is no equality of power and control in the system. That is total domination by very, very powerful secondary sector organisations.

   Dr Colin-Thomé: The point I am making is that basically you have a dominant position of hospitals and maybe we have made it worse. There are two things there. One is that we need better commissioners and internationally they are in a weaker position. One of the MPs was saying before, Ms Atkins I think, that it is a provider-dominated world and there is nobody making any interjection on behalf of the population or asking if there is any comparative data. The only thing about payment by results that seems odd is that we always assume that therefore it will only go to the hospital—and I think your coach party analogy was quite nice. On the other hand, payment by results also helps the commissioner if we can develop them enough—which is the whole point of trying to develop them. If you do not refer for outpatients or shorten lengths of stay, then you do not need to give that money to the hospital and you can use it for something else. The PBR has only been a tool, but because of the disproportionate power—the whole point of trying to make commissioning better and at the moment it is underdeveloped and we have had big hospitals for 100-odd years—is to equalise that and to have a more rational view of how we use resources. Yes, not much success in 20 years, but the potential is necessary because of our obsession with bio-clinical care, much of which is now ineffective and inappropriate.

  Mr Stout: I have to say I would not be quite so gloomy about where we have succeeded. I agree with the analysis in terms of the relative power imbalance and so on. I have spoken to several of your local PCTs before coming here, and if you look at the action they have been taking over the last two or three years in terms of improving health, in terms of redesigning services, in terms of making changes in care pathways that both improve health and achieve better value for money, then every one of you, in talking as you do to your local PCT, knows that there are improvements being made. To take, as an example, the work on obesity in Rotherham. It is fantastic work. In South-East London, where I think you practice, there is work going on about redesigning a pretty challenged healthcare system using an evidence base, using proper analysis, using the tools of commissioning to drive clinical change. There are lots and lots of examples of really good progress being made.

  Q74  Chairman: Commissioning has been seen as a bit of a weak link in the National Health Service for quite a while now, has it not? Why is that?

  Mr Stout: If I can kick-off on that from a PCT point of view, it is right to say that has historically been the case. Why? First, the tools of commissioning did not really exist until three or four or five years ago, so we did not have a contractual system, we did not have payment by results. PCTs/commissioners did not hold contracts with GPs or with dentists. All those things are new. They have all happened in the last four or five years. What has changed in the last couple of years is a more serious policy focus on commissioning. The Prime Minister's Delivery Unit did a review in 2007 on commissioning and basically concluded that there was not a clear story of what commissioning was. There was not a proper programme of support there. We are starting to combine policy levers that are designed for commissioning and a programme that supports the development of skills and capacity within commissioners to use those tools. That is why it has been weak but also why it is now strengthening.

   Dr Colin-Thomé: Internationally we are obsessed by the provider side, especially hospitals. This is not peculiar to the United Kingdom. Whichever country you go to, that tends to be the policy or managerial focus. This is a chance to begin to shape different health care provision by giving more skills and talents and other things to our commissioners. It has been an uneven contest in the past and we need to improve on that.

  Mr Belfield: It is also right to remember that we keep changing what we call the commissioner or the purchaser function. We have had something like five or six changes since the 1990s, so every time we get somebody in post, then two or three years later they are moving on, as described in the last session. There is something about letting us have some continuity and some stability here to help commissioners work. Also, picking up on David Stout's point, we have never really set out nationally, until very recently, the compelling vision about what commissioning was meant to achieve. We have never really set out what we think are the real tools of development to help support PCTs. We have never really set out what we think you need to be competent at to be a great commissioner. We have done that in the last two or three years. As David said, it is early days. We are beginning to see some real improvement across PCTs. The levelling up will take some time because the organisations are quite young and some of the FTs have been around for a long time. If you call me back to this Committee in two or three years, we will be talking about a much more even balance in the system.

  Q75  Dr Taylor: My question was going to be: Is the continuous reform of commissioning evidence of continuing failure?—which is the message I got from the last session—but you have said very clearly that in the last two or three years the changes have begun to lead to improvement. Can you clarify that a bit? In what way? What changes have come in the last two or three years that have radically changed the whole system so that we can now look forward to commissioning being a success?

  Mr Belfield: The big differences have been, in the last two years particularly, that PCTs have begun to analyse deeply and understand the long-term health needs of their population. That has not really been done before. They are looking forward more than they have done before. We are seeing more examples of collaboration and partnership in the last two years, where the local providers (the voluntary sector, PCT and local authority) are working together on single projects. Again, we are seeing much more of that. And we are seeing professionalisation of commissioning. An example of that—and this goes against the BMA argument about collaboration—is that in Manchester and Cheshire ten PCTs are working with ten hospitals and the ambulance service to redesign stroke services across the complete care pathway for nearly three million people. That is down to the PCT saying, "We need to work together. We have looked at the needs, the health needs of particularly stroke patients in Manchester, and we want to make a difference." We have examples of that on a large scale, and on a smaller scale, if you go to somewhere like West Sussex, the PCT are working with the police and with the local authority there on a very small scheme about looking at helping women who are suffering domestic violence. We have examples at both ends of the spectrum of PCTs beginning to understand the needs of their population and designing services in partnership with others.

  Mr Stout: It would be characterised by effective use of evidence; effective use of data; effective engagement with clinicians of all sorts in both primary and secondary care (doctors and nurses and so on on the patch); and a dialogue with the public. Those are the four things you need. You asked the previous witnesses what the criteria for effective commissioning would be and I would say those pretty much define it.

  Q76  Dr Taylor: Are they getting better data? We felt from the previous witnesses that the data was still pretty poor.

  Mr Stout: It is certainly better than it was. What are the things that hold commissioning back? It is the fact that we still do not have data that is live; it is still often out of date; there are still coding issues in terms of how well activity is coded and so on. But is it better than it was five years ago? Absolutely. Undoubtedly. Why is that? It is because we are using it. Data will always be bad until you use it for a purpose. If you use it for a purpose, that incentivises everyone who provides the data to get it right.

  Q77  Dr Taylor: Has the reduction in numbers of PCTs helped?

  Mr Stout: Yes, to some extent I would say it has, but I would also caution against this obsession which your previous witnesses touched on of constantly reorganising. There is no optimum size for a PCT because commissioning operates at multiple levels. You can play around with structure as much as you like, but the downside of that is that it then destabilises. It has the effect Gary talked about of not giving you a very continuous leadership or a continuous focus in a particular area.

  Q78  Dr Taylor: You do not see further upheavals.

  Mr Stout: That is up to politicians ultimately. I would certainly hope not. We would certainly advocate leave the structures where they are and focus on making them work, rather than focus on every two or three years and then throw the structure up in the air again.

  Q79  Chairman: Could I prod this a bit further. You say about the last few years and you talk about what Rotherham PCT is doing on obesity, but they are doing it on other things as well. I know very well about the disease burdens in communities that I have lived in all my life and represented here for many years in. We do not need people to tell us about that, but we have only just started looking at it in the last few years. Is that because of commissioning or wanting to commission, or is that because of the amount of resources that have been made available at local level? Which one is it?

   Dr Colin-Thomé: I would have said from my experience that it was because of our focus on commissioning for broader needs and to look beyond the bio-clinical. There is that old saying from Rohmer that a bed built is a bed fillt, but if you just provide more bio-clinical acute care, you tend to use it more and more without necessarily challenging its effectiveness. We have to make a balance as to what those priorities are. I would not take the Gwyn Bevan point about strokes: I think you do need to both those things for strokes. But there is a whole lot of other things that are currently being done by clinical providers, whether in primary or secondary care, where its effectiveness and usefulness can be heavily challenged. In fact there is a better web page now, taking Dr Taylor's point of view, on productivity and all such things, readily accessible to all of us, so that we can begin to compare different services. I think it is because of the focus on commissioning—it is beginning to shape where we are. Of course health care is important, but also we have to look at some of the broader issues, like obesity, which maybe we had not focused on in the past or had looked at only on a bio-clinical model. I think it is shaping a difference.

  Mr Belfield: In answer to your question, I think it is both things. The resources have certainly helped and it has certainly helped as well that we have taken away many of the access issues in secondary care. That means that the PCTs have been able to focus on other things. That is certainly part of the answer. The other issue as well is that as a society we are moving away from hospital-based provision into more community-based care. It is more about dealing with long-term conditions. Society is moving that way anyway, but commissioning has certainly helped push it faster.

  Mr Stout: The role of commissioning in that is both paying for and planning health service delivery, but also paying for and planning for health promotion and wider activities. It is that combination. The fact that there is one body at local level responsible for both those tasks has led to the focus in all the different areas on the right things that matter to the populations in your area, rather than simply the theory that you can do this once at national level with regulation and that will give you the right answer. I simply do not believe that, which is why we are strong advocates for maintaining the separation of commissioning from provision of responsibilities.


 
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