Re-Let of the Provision of Older People Residential & Nursing Care Contracts

1. Re-Let of the Provision of Older People Residential & Nursing Care Contracts Supplier Events February 2014 Kent County Council Commissioning and Procurement 1

2. Agenda • Welcome and Housekeeping • Christy Holden • Accommodation Strategy • Residential & Nursing Care in Kent for the future • The Care Bill • Clare Maynard • Procurement • The Tender Process including DPS/Framework • Hayley Bradbury • Kent Business Portal • Provider Involvement (Table Exercise) • What needs would you expect to see in the categories of low, medium and high? • What do you believe is the optimum staff ratio to accommodate these needs? • What assumptions should be made about occupancy levels in a business model? • Question and Answer session 2

3. Accommodation Strategy Christy Holden Head of Strategic Commissioning – Accommodation Solutions KCC Families and Social Care February 2014

4. Planning Applications for care provision 2011-2013 = 2445 units/beds

5. Planning applications grouped by type and district

6. Evidence Base: Review of needs – analysis of FSC case loads Placement patterns – supply/demand/behaviours/solutions Forecast of future needs Joint Strategic Needs Assessment Population forecasts – KCC and ONS UK Health Statistics Centre for Disability Research Current Supply Future Supply

7. Strategy: Engagement with partners Key Strategic Statements – vision and direction Review of evidence base Draw conclusions District Profiles Maps Engagement, Ownership and sign off Publish and launch

9. Phase Two: Stakeholders and Maps Interactive data sources Candidate Project Areas Understand provider strategy and plans Options Appraisals Business Cases Commissioning and Procurement Plan Opportunity Remodel, commission, decommission

10. Residential and Nursing Care in Kent for the Future and The Care Bill Supplier Events February 2014 Kent County Council Commissioning and Procurement 10

11. The Challenge • Ageing population • Complex needs • Increasing expectations • Reducing budgets and the need to transform • Embedded culture and (some) reluctance to change • A growing market • The Care Bill 11

12. The Future • 24 hour home care service • Integrated health and social care provision addressing local need • Community services, equipment, assessment • Trusted provider relationships with clear accountabilities • Appropriate housing options • Care home provision • Choice and Control 12

13. The Vision for Care Homes • Fewer standard residential care placements • Appropriate genuine alternative housing options • Strategic shift of provision • Specialist dementia care with appropriate design and facilities • Specialist nursing care with appropriate design and facilities • Aspiration for single rooms with ensuite facilities • Community resourcing and central hub 13

14. The Care Bill • https://www.gov.uk/government/publications/the-care-bill-factsheets • Published in May 2013 • Progressing through Parliament; expected to be enacted by April 2014 with the approx 30 accompanying regulations in place by October • Legal Framework implemented from April 2015 • Key Changes (cap on care costs, raising the capital threshold etc) do not start until April 2016 14

15. The Care Bill (2) Key Elements: • Single duty to assess and meet eligible needs • Duties towards Carers • National Eligibility Criteria • Universal Deferred Payment System • Cap on Care Costs • New Charging Frameworks • Delegation of Local Authority Functions • Information and Advice • Direct Payments 15

16. The Care Bill (3) • Safeguarding Adults Board • Section 117 After Care Services • Prisoners and people in bail accommodation • Registers of sight-impaired adults and disabled adults • Duty to promote diversity and equality in provision of services • Transition for children to adult care and support • CQC reviews and performance assessments • New criminal offence regarding false or misleading information 16

17. The Care Bill (4) • Universal Deferred Payment System • Likely to be easier to qualify • Cap on Care Costs • Cap of £72,000 for Care, calculated costs via assessment • New Charging Frameworks • Initially £27k and £118k • Direct Payments • For people in residential care from April 2016 • CQC reviews and performance assessments • Duty to be extended to local authorities • New criminal offense regarding false or misleading information • Relates to information providers legally required to supply 17

18. Thank you for your time Any questions?

19. Older Persons (General Frailty and EMI)Residential and Nursing Contract Re-let 2014 Clare Maynard Procurement Category Manager - Care 19

20. Background • Contracts last tendered in 2002 and awarded in April 2003 • no KPI requirements included in current contract • Terms and conditions are out of date • Annual price review incremental decisions since 2003 • need to understand a “fair price for care” and prepare for Care Bill requirements • little understanding of what “good quality” looks like • doesn’t meet the requirements of KCC, market or the service user 20

21. Current Situation • current contracted providers ~311 care homes on call off (framework) contracts • additional providers on individual placement contracts including Out of County placements • ~ 350 OP and OP Nursing homes in Kent from CQC data • 8,200 residential care beds in Kent • 3,700 nursing home beds in Kent • KCC Residential placements 1,240 p.a. • KCC Nursing placements 840 p.a. • KCC funded placements represent 36% of total (64% voids, self funders or Out of County) • highest no. placements are in Canterbury, Shepway, Maidstone and Thanet areas 21

22. Why a competitive tender process? Regulations • We have to comply with certain rules and regulations when buying goods and services, which include EU directives on public procurement. • Contracts for more than £172,514 of goods and services have to be advertised in the Official Journal for the European Union in line with the public procurement directives. • Our Constitution includes its own Contract and Tenders Standing Orders, to which all budget holders must adhere: • For transactions valued at, or more than, £50,000, a formal tender process must be conducted where no fewer than three competitive tenders must be sought. • Further information can be found on our website on Spending the Councils Money • Under the principles of the directives all competition must be fair, open and transparent. Our promise to you • We are committed to using a mixed range of suppliers to help stimulate a varied and competitive marketplace. To achieve this, we will take a proactive role in our interaction with suppliers. • We promise to treat each supplier, prospective supplier and enquirer with fairness and respect. We will be helpful and considerate at all times to all those who require our assistance. • We will follow a fully auditable process that is compliant with public procurement legislation and give feedback to unsuccessful bidders upon request, following the award of a contract. 22

23. Dynamic Purchasing System (DPS) • DPS is a compliant and contractual electronic process for setting up and maintaining a list of providers • A two stage open tender process • Initial Expression of Interest • Providers will submit their overall operating costs (private, other LA and KCC) into a cost model outlining hotel, management and resource costs. Providers will thenspecify the weekly bed price they wish to offer KCC for 18 months • Tenders will include set pass/fail criteria (to be defined). • Placement advertised and providers then submit actual price to accept a client. • The DPS will remain open for new entrants to join • Regular demand profiles will be advertised, we are proposing placing a regular notice advertising our intentions on the Kent Business Portal at https://www.kentbusinessportal.org.uk/ 23

24. Tender Process 24

25. Tender Process – Stage 2 25

26. 26

27. Only MSOA’s within individuals postcode area will be invited to price 27

28. Key Points • KCC will be re-letting the contracts for OP Residential and OP Nursing provision • all providers need to register as a supplier on Kent Business Portal at https://www.kentbusinessportal.org.uk/ • new contract arrangement will be a Dynamic Purchasing System • planned contract go live date by October 2014 • demand will then be re-advertised on a weekly basis • only providers in the MSOA area within a specified radius of the individuals postcode will be invited to provide their best price at that time • this arrangement will be in place for a period of 18 months • all information will be collated in preparation for the implementation of the Care Bill 28

29. Procurement Process

30. Questions/Comments? Feedback to KCC at opfutures@kent.gov.uk 30

31. How to Do Business on the Kent Business Portal Hayley Bradbury Procurement Officer 31

32. Registering on the Kent Business Portalwww.kentbusinessportal.org.uk 32

33. Supplier Registration Introduction 33

34. Supplier Registration • Step 1 of 5: Contact Information & Security • Step 2 of 5: Company Information • Step 3 of 5: Category Selection Social Community Care Supplies and Services (32000000) Adults and Older Peoples Services (32100000) • Step 4 of 5: County Council Selection • Step 5 of 5: Website Terms & Conditions Supplier Registration Summary… www.kentbusinessportal.org.uk 34

35. Processing your Request to Register The Council’s Procurement Support Officer logs into the Portal daily to process new requests to register. 2 separate automated emails. 35

36. Technical Support 36

37. Questions? 37

38. Provider Involvement • What needs would you expect to see in the categories of low, medium and high? • What do you believe is the optimum staff ratio to accommodate these needs? • What assumptions should be made about occupancy levels in a business model? 38