Agenda item

INTEGRATED COMMISSIONING: BUILDING 'ONE SYSTEM, ONE BUDGET' SECTION 75 AGREEMENT

Following approval of the business case by Cabinet on 15 July 2014 and further consideration on 11 November 2014, Carole Burgoyne (Strategic Director for People) will submit a report seeking approval of the Section 75 Agreement for the integration of budgets with the Northern, Eastern and Western Devon Clinical Commissioning Group for health and social care purposes. 

 

A background paper (the equality impact assessment) can be accessed at the Council’s website Council and Democracy/Councillors and Committees/Library/Cabinet background papers or using the following hyperlink –

http://tinyurl.com/q3d6bmh

 

This matter is also being considered by the Caring Plymouth Scrutiny Panel on 5 March 2015 and the outcome will be reported to the Cabinet meeting. 

Minutes:

With reference to minutes 26 and 27of 15 July 2014 and minutes 74 and 75 of 11 November 2014, Carole Burgoyne (Strategic Director for People) submitted a report seeking approval of the Section 75 Agreement for the integration of budgets with the Northern, Eastern and Western (NEW) Devon Clinical Commissioning Group (CCG) for health and social care purposes, including draft Commissioning Strategies for Wellbeing, Community Based Care, Complex Care and Children and Young People.  

 

The report indicated that –

 

(a)

the contribution to the integrated fund for 2015/16 was estimated to be £460 million to be split on a 77:23 basis from the CCG and the City Council;  

(b)

the proposed Plymouth Integrated Commissioning Board would report to an unchanged Western Locality Board and to the City Council’s Cabinet and Health and Wellbeing Board.  

 

Councillor Evans (Council Leader) reported that the proposals would take effect from 1 April 2015 and would radically transform how health and social care services were planned and delivered, bringing together services such as public health, hospitals, community safety, community health services and children’s services, with the focus being on individuals rather than on the institutions providing the services. 

 

Councillor McDonald (Cabinet Member for Children, Young People and Public Health) introduced the proposals and emphasised that the new way of working would help to ensure better health outcomes for individuals and greater value for money as health and social care services came together and put prevention at the heart of their services.

 

Councillor Tuffin (Cabinet Member for Health and Adult Social Care) supported the proposals, emphasized the importance of integrated commissioning and the ‘step changes’ that would be seen when organisations that believed in service to the client group worked very closely together.  He also reported that the Caring Plymouth Scrutiny Panel had considered the proposals on 5 March 2015 and fully supported the recommendations. 

 

Councillor Peter Smith (Deputy Leader) highlighted that the Section S75 agreement enabled the organisations to pool funds and which would total c. £450m and detailed arrangements had been agreed to safeguard those funds.

 

Jerry Clough (Chief Operating Officer of CCG and Managing Director, Western Locality), Anna Coles (Project Manager, Transformation),Alex Hurford-John (Programme/Project Support Officer),Nicola Lenden (Transformation Communications Lead), Richard Longford (Head of Communications), Craig McArdle (Head of Co-operative Commissioning),David Northey (Head of Corporate Strategy), Harry Sherwin (Project Manager, Transformation),James Stannard (Project Management Apprentice) and Linda Torney (Assistant Head of Legal Services) also attended the meeting for this item.

 

Cabinet also heard from Jerry Clough, Tracey Lee (Chief Executive) and Carole Burgoyne (Strategic Director for People) who -     

 

(c)

emphasised the benefits for people including services for families as a whole;

(d)

indicated that from 1 April 2015 the authorities would work as one integrated commissioning team; 

(e)

 

paid tribute to everyone who had worked on the transformation proposals, past and present. 

 

Alternative options considered and reasons for the decision –

 

As set out in the report.

 

In order to meet the challenges facing the health and wellbeing system Agreed that NEW Devon CCG and Plymouth City Council proceed towards Integrated Commissioning and Cabinet - 

 

(1)

approvesthe draft terms of reference for the Plymouth Integrated Commissioning Board (PICB) as submitted;

(2)

approves the principle of the draft section 75 agreement and authorise the Strategic Director for People to sign the final section 75 agreement on the basis that there are no material changes to the proposals agreed at Cabinet and the CCG’s Governing Body;

(3) 

agrees to develop the service based on the draft documentation (terms of reference, financial framework and section 75 agreement);

(4) 

agrees the proposal that the CCG takes the role of the host of the integrated fund;

(5)

approves the temporary joint appointment of a senior executive to adopt the responsibilities of the pool manager, set out in the Regulations whilst a full options appraisal is undertaken;

(6)

approves the proposed mechanism for capping the financial risk share obligation to 0.5% of the total integrated commissioning budget, apportioned according to budget contribution;

(7)

notes that any overspend in excess of the risk-share cap will remain the responsibility of the commissioning partner with statutory, regulatory or policy responsibility;

(8)

agrees the principle of the Financial Framework to be adopted by both partners and authorise the Council’s Section 151 officer to provide oversight and agree implementation of the same;

(9)

agrees the proposal to administer the financial transactions of the integrated commissioning function, within the existing administrative arrangements, as far as is practicable;

(10)

approves that the draft Integrated Commissioning Strategies as submitted for consultation;

(11)

notes the inclusion of the acute health services budget in the integrated commissioning fund;

(12)

extends their thanks to everyone who had worked on the project from the City Council and the NEW Devon CCG as they had worked incredibly hard on the development of such a large, ambitious and complex project, with particular recognition of Carole Burgoyne and Jerry Clough for their inspirational leadership, Dr Paul Hardy (Chair of the Western Locality Board, New Devon CCG), Dr Peter Rudge (former Chair of the Western Locality Board and former member of the Health and Wellbeing Board) and Craig McArdle.

 

(Councillor Jon Taylor having declared an interest, withdrew during consideration of the item).

Supporting documents: