Older People:  Usual Cost of Delivery/Review Pricing

Are your pricing systems and fee tariffs reflective of the usual cost of delivering services?  There is a general ‘putting off’ approach to tackling the usual cost issue, and yet procurement processes and pricing systems can be improved by developing a greater understanding of the local cost of delivering services.

To achieve this Valuing Care collects detailed financial information from your selected providers to analyse and benchmark the results against our database comparator in order to challenge and corroborate findings.

We engage with care home providers to evidence the usual cost of providing services; helping to inform the setting of future rates for services that are fair, sustainable and evidence based.  We can also help with:

  • 3rd party top up fees

Valuing Care assesses whether third party top up fees represent the true cost of care.

  • Domiciliary care

Valuing Care has undertaken a number of costing and market shaping projects in home care services, and therefore we have developed robust model rates for domiciliary care.

 

Focus on: Barnsley Metropolitan Borough Council

The Council contracted Valuing Care to undertake a cost review of residential and nursing services for older people. The purpose of the review was to inform the setting of future rates for services that are fair, sustainable and evidenced based. Valuing Care used its established processes to undertake a survey of care home costs to identify the usual cost of providing services locally.

The survey also gathered information on the overall health and sustainability of the market with specific regard to occupancy levels and the range of fees. The cross corroboration of the survey results with Valuing Care’s cost model and national database comparator, provided the Council with clear guidance of what represents a fair rate for care home services. The review also highlighted some of the inefficiencies in the market arising from the current oversupply of places.

Key benefits:
• Established processes for engaging care home providers, and evidencing the usual cost of providing services.
• Cross corroboration of local survey results with Valuing Care’s national database comparator.
• Increased intelligence about the range of fees charged to different customer groups, levels of profitability, market efficiency and sustainability.

 

Focus on: South Gloucestershire Council and CCG

The Council and CCG commissioned Valuing Care to undertake a joint review of the cost of care homes services for older people. The purpose of the review was to develop a consistent fee tariff across health and social care which allowed for the impact of the national living wage.

To fulfil these requirements Valuing Care undertook a survey of care home costs to identify the usual cost of providing services and usual rates of pay for each type of staff. This information enabled Valuing Care to model the impact of the NLW on care home services in South Gloucestershire and to recommend a tariff of rates for each type of service.

Key benefits:
• Ensures a clear understanding of the local cost of delivering services, including the impact of the National Living Wage.
• Development of a new consistent fee tariff for residential, nursing and continuing health care, which reflects usual levels of care to people with different types of need.
• Provides commissioners with greater confidence they are achieving value for money whilst ensuring the required supply and quality of places.

 

Focus on: Stoke-on-Trent City Council

A joint review of the cost of home care services for older people was instigated in response to local providers reporting increased difficulties in the recruitment and retention of staff.

The objective was to provide commissioners with the necessary data to ensure a sustainable market in Stoke, and to deliver the quality and capacity of service to meet the needs of the local population.

A survey of providers helped understand the usual cost of providing services, and identify options for improving recruitment and retention.

Key benefits:
• Provides critical insight into market conditions and the issues affecting providers.
• Ensures a clear understanding of the usual cost of delivering services locally.
• Provides commissioners with greater confidence they are achieving value for money.

 

Focus on: Buckinghamshire County Council

The local provider forum requested a review of council fees with a view to implementing an inflationary uplift. The Council chose to review the delivery costs and implement a fair, sustainable and evidenced based set of spot purchase fees for residential, nursing and dementia services.

Valuing Care collected detailed financial information from selected providers delivering residential services. The information was analysed and the survey results benchmarked against our database comparator to challenge and corroborate the
survey results.

The outcome of the exercise being the usual prices paid by Buckinghamshire were broadly correct, with only the nursing element appearing under funded.

Key benefits:
• Provided clear guidance on what represents a fair and sustainable rate for older people’s care home services in Buckinghamshire.
• Established that councils should not be required to subsidise the additional costs of nursing staff (which exceed Free Nursing Care).
• Provided a medium term strategy for fee rates based on reliable market benchmarks.