Commissioning - Health Committee Contents


Written evidence from the National Association for Voluntary and Community Action (COM 54)

  NAVCA is the national voice of local support and development organisations in England. We champion voluntary and community action by supporting our members in their work with over 160,000 local charities and community groups. NAVCA believes that voluntary and community action is vital for vibrant and caring communities.

  We provide our members with networking opportunities, specialist advice, support, policy information and training. NAVCA is a vital bridge between local groups and national government.

  Our specialist teams take a lead on the issues that matter most to local support and development organisations. We influence national and local government policy to strengthen local voluntary and community action.

  NAVCA's work is guided by the values of equality of opportunity, participation, co-operation and democratic involvement. In supporting the local voluntary and community sector we help to combat poverty, disadvantage and discrimination, and improve the quality of life for communities, groups and individuals.

INTRODUCTION

  1.  NAVCA welcomes the opportunity to submit written evidence to the Health Committee inquiry into Commissioning. In our response we focus on the issues that are most relevant for our members, for local voluntary organisations and community groups and for excluded communities and individuals. These include:

    — wider outcomes and social value;

    — health inequalities;

    — the voluntary and community sectors role in commissioning;

    — grant funding;

    — commissioners' skills and understanding of the sector; and

    — integration of health and social care.

  2.  We welcome ambitions that seek to make services more accountable to patients and the public, to provide meaningful choice, and to reduce bureaucracy and top-down control. What is less clear is how the reforms proposed in the White Paper `Equity and Excellence: Liberating the NHS' will make these ambitions a reality.

WIDER OUTCOMES AND HEALTH INEQUALITIES

  3.  We agree that health commissioning is too remote from patients and the public. We welcome an increased role for those with clinical expertise in the commissioning process, particularly where this will improve clinical pathways and the commissioning of acute services. However, we believe there is a risk that moving from PCT commissioning to GP consortia could swing too far in favour of a clinical model.

  4.  It is essential that health commissioning incorporates wider social outcomes and reduces health inequalities: it should not just focus on clinical interventions. Commissioning needs to focus both on geographical communities and communities of interest, as well as on individual patients. It is critical that there is continued investment in prevention and early intervention.

  5.  In a challenging financial climate, radical approaches are needed to support more innovative, cost effective interventions across agencies. Commissioning for improved health and well-being needs to be based on a total place approach, creating incentives and opportunities for local authorities and their partners to break down service silos, join up budgets, reduce costs and deliver better outcomes for local people. A joint approach is needed, looking across services, such as education, employment and housing, to commission for the improved health and well-being of local populations. However, the challenges of implementing this approach should not be underestimated, particularly where resources are already overstretched.

  6.  In order for Health and Wellbeing Boards to be effective in joining up the commissioning of local NHS services, social care, health improvement and the wider local authority agenda, they will need to have statutory powers to hold GP Consortia to account in this area.

  7.  The full value of what is being delivered in a contract needs to be evaluated and needs to be considered at the early stages of the commissioning cycle. NAVCA believes this demands a better understanding of social value in commissioning and procurement. Social value is the additional benefit to a wide community over and above the direct purchasing of services. We would welcome government support for the Private Member's "Public Services (Social Enterprise and Social Value) Bill" introduced to parliament by Chris White MP.

  8.  Wider outcomes and community benefits should not be seen as the responsibility of the proposed Public Health Service alone but must be integrated into commissioning practice across the public sector. We are concerned that in seeking to increase clinical expertise in the commissioning of health services, a lack of commissioning skills and the need to achieve extreme productivity savings could lead to a focus on clinical interventions, acute care and short term savings at the expense of preventative services and cross community benefits.

What voluntary organisations and community groups can contribute to commissioning and engagement with the sector?

  9.  Voluntary organisations, charities and community groups have a much wider role in the commissioning of public services than just being contracted to deliver those services. They also have a key role in helping to identify needs, particularly for marginalised groups, and in shaping service design. Intelligent commissioning needs to involve both patients and the wider community at the early stages of the commissioning cycle and ensure the needs of the most excluded are taken into account. Recently developed National Occupational Standards for Commissioners cover a range of skills including engaging with community partners. Our concern is that GPs have limited experience of working in a culture of public participation. In some areas our members have reported great difficulty in trying to engage with practice based commissioning. We have particular concerns that GPs are not involved in and often unaware of the neighbourhood level preventative work which is carried out by many small local voluntary sector organisations.

  10.  The voluntary and community sector has a long history of successfully engaging with the most excluded groups, communities and marginalised individuals. Success in this area is a result of being rooted in the local community, as well as having particular skills around engagement, involvement, partnerships and representation. Many of the most vulnerable citizens are not registered with a GP: it is the voluntary and community sector which often works with these people.

  11.  NAVCA's members support and champion local voluntary organisations and community groups. We call them support and development organisations, locally they are often known as CVS or Voluntary Action. These organisations are well placed to take a greater role in engaging with local communities and identifying their needs. They already have many of the skills required to identify gaps in the provision of community services, to develop service specifications or to contribute to training GP Consortia in public participation and working in partnership with the voluntary and community sector.

  12.  Local support and development organisations also have skills and experience in bringing together commissioners and local groups. This is evidenced in the directories research project which looked at the use and development of supplier directories in the voluntary and community sector, see Third Sector Directories Research (North West Region-wide) July 20101

  13.  Bringing commissioning closer to local communities should result in increased opportunities for the voluntary and community sector to engage in sharing their expertise on local health priorities, setting outcomes and designing services to meet need. If meaningful engagement is to continue, local support and development organisations will have an essential role to play, developing links and building bridges between local groups, communities and GP Consortia. At present, our members often receive funding for this work from PCTs. This may be through grant aid, enabling a specialist health partnership officer to be employed, grants for specific projects or contracts to deliver services around partnership working, engagement and representation. With commissioning structures changing, it is essential that this wide-ranging engagement work continues to ensure that the benefits of working with the voluntary sector are realised and that commissioning is effective in reducing health inequalities.

  14.  Health and Wellbeing Boards are seen as the vehicle for aligning health commissioning with wider outcomes, therefore it is essential that they have appropriate voluntary and community sector representation. GP Consortia will need to fully engage with and integrate into these boards and other local strategic partnerships.

  15.  One of the proposed functions of the Health and Wellbeing Boards is to undertake a scrutiny role for major service re-design. However, scrutiny functions need to be separate from the original decision making bodies and appropriate checks and balances are needed across the system to ensure accountability for decisions, to ensure that local politics do not inappropriately influence decision-making and that decisions are taken at the right level.

  16.  We value the intention to strengthen the patient and public voice through local HealthWatch and to increase accountability to patients and local communities. We believe that in order for this to be successful HealthWatch should be commissioned and delivered at a local level by organisations that are based within and understand local communities. Independent research undertaken by Warwick Business School, published in January 2010,[82] indicates that where the contracts for LINks host organisations are held by local organisations, the LINk has been better able to represent the core values of the local community and engage with disadvantaged people. HealthWatch should focus not only on strengthening the involvement of individual patients, but provide an increased role for the engagement of communities in both operational and strategic commissioning.

  17.  We are concerned that reorganising commissioning structures, as proposed in the White Paper, will incur significant additional costs and risk at a time when public finances are under great pressure and resources are desperately needed for service delivery.

  18.  We are concerned that the process of transferring commissioning from PCTs to GP consortia could in effect become a very expensive rebranding exercise. It is difficult to see how this reconfiguration will reduce overhead costs. In addition to the financial cost of buying in commissioning support services, there is a risk that commissioning could take a step backwards and revert to overly bureaucratic and disproportionate practices, particularly in regards to procurement.

  19.  The previous Health Committee report on commissioning suggested that commissioning weaknesses remained 20 years after the introduction of the purchaser/provider split. However, improvements in commissioning have been made. GP commissioning consortia will have fewer skills and less experience in commissioning than PCTs. It is likely that they will need to buy these skills in. In addition to needing access to wide ranging commissioning skills, GP consortia will be bound by other public duties such as equalities duties. We expect that this is another area where they will need to buy in outside specialist support.

  20.  Inexperienced Commissioners result in bureaucratic and risk adverse procurement processes being followed when they do not need to be. For example full Part A processes are often followed for Part B or below threshold contracts. This increases procurement costs and therefore reduces the funding available to frontline services. With PCTs, NAVCA members have started to see some improvements in this practice. We believe improvements are due to the increasing skill and confidence of commissioners, who are seeking more innovative and cost effective ways to secure services and who are not letting themselves be overly-controlled by procurement departments. We need to ensure that the move to GP commissioning consortia does not create a return to overly bureaucratic, inefficient procurement practice, owing to a lack of commissioning skills within the consortia. Where these skills are bought in there is a risk that expensive, risk adverse practices could once again dominate.

  21.  We are also concerned that risk adverse practice and a lack of understanding around procurement regulations could result in reduced use of grant funding. A number of recent guidance documents published by both the Department of Health and other government departments have made it clear that contracting should not inappropriately replace grant funding. There continues to be a place for grants in a mixed economy of funding. Competitive tendering and outcomes based, payment by results contracting is not the most appropriate or efficient delivery mechanism for all services. Local community based organisations, relying on volunteer effort, can deliver very cost effective preventative support, which can reduce the need for costly health and social care interventions, such as emergency hospital admissions. If we are to see a growth in innovation and increased choice for patients, grants are also an important mechanism in stimulating the market.

  22.  We are also concerned that some GP Commissioning Consortia may seek to simplify their commissioning role by awarding larger contracts to a reduced number of suppliers. We would argue that a number of services, especially community based provision, are more effectively delivered by local organisations. If only larger contracts are tendered, many valuable and cost effective voluntary and community sector services would be lost, thus reducing patient choice. GP Consortia will need to have the skills to recognise where outcomes can be better achieved by procuring services in smaller scale contracts or lots.

  23.  If large contracts are to be awarded to prime-contractors, then we would expect some form of protection to be developed for smaller sub-contractors, including recognition that it is often more time consuming and expensive to work with marginalised communities or with those with multiple or complex needs. Protection of sub-contractors needs to be incorporated into contracts as well as a framework to guide good practice, like the DWP's Merlin Standard. If these safeguards are not put in place, an unfair proportion of risk could be borne by those further down the supply chain, and the most vulnerable patients could be excluded from services.

Difficulties of working with GP consortia that are not aligned to local authority boundaries

  24.  It will be difficult to align health and social care commissioning where GP Consortia cover different boundaries to those covered by local authorities. Whilst in some areas this has continued to be an issue for PCT and Local Authority joint commissioning, many areas currently enjoy coterminous boundaries. We are concerned that joint commissioning will be made more difficult and inefficient if GP consortia have no prescribed geographical coverage. This will also present problems and inefficiencies for the voluntary and community sector in engaging in partnership working. The reasons why PCTs were reduced in number and aligned more closely to local authority boundaries should not be ignored.

Where will challenges be directed?

  25.  From what we understand under the proposed changes Monitor and the NHS Commissioning Board would be responsible for ensuring transparency and fairness in commissioning decisions. We are concerned that, if these bodies are insufficiently resourced to operate effectively at a regional or local level, poor practice could go unchecked and providers could have difficulty in challenging bad practice at a local level. Dispute resolution procedures in the form of Co-operation and Competition panels currently exist at PCT and SHA level, as well as at national level, ensuring accessibility for local providers.

CONCLUSION

  26.  Whilst we support the stated aims of the White Paper, of putting patients and the public first, improving accountability and healthcare outcomes and increasing efficiency, we have many concerns about the practical implications of the proposals. Not least, we are concerned that over recent years the NHS has suffered from too many reorganisations, that the proposed rate of change may be too rapid and that the increased risks and costs involved in implementing these fundamental reforms, are too high. We are particularly concerned to ensure that there are no unintended negative consequences from the reforms, that the progress which has been made with respect to the role of the voluntary and community sector is built on, and that the health inequalities for most disadvantaged groups in our communities do not increase.

October 2010







82   Local Involvement Networks (LINks) Local Authorities Research Consortium Research Project Report Jan 2010. Back


 
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