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Designing and implementing PbR 18 June 2012 Ian Hickman Director of Policy, Audit Commission.

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Presentation on theme: "Designing and implementing PbR 18 June 2012 Ian Hickman Director of Policy, Audit Commission."— Presentation transcript:

1 Designing and implementing PbR 18 June 2012 Ian Hickman Director of Policy, Audit Commission

2 Our report on payment by results, published in April

3 Incentives for providers and commissioners Well designed local PbR schemes have the following incentives for providers and commissioners: For commissioners: Savings Deferred costs New resources Improved outcomes Transferred risks Clearer accountability For providers: Range of outcomes New ideas Greater freedom Improved efficiency and effectiveness New entrants

4 Engaging providers Engaging providers in the design of a scheme: Measurement Matching rewards to contribution Joint commissioners Engaging them in the implementation: Rewards need to be attractive Mix of core and reward payments

5 Mitigating risks PbR schemes have the following risks: For commissioners: Costs may increase Costs may be deferred Disagreement about outcomes Schemes may fail For providers: Extra costs Attribution issues Schemes may fail

6 Key principles 1.A clear purpose 2.A full understanding of the risks 3.A well-designed payment and reward structure 4.Sound financing for the whole scheme 5.Effective and robust measurement and evaluation Five key principles for any PbR scheme:

7 Feedback we would like on our work What were your initial views on the usefulness of our publication? Are there any aspects that you think could have been clearer/made better? We left out a piece of work on Social Impact Bonds - would it be useful to do some follow up work around these/other newer funding models? Do you know of any case studies that we should try and find out more about/attempt to write up? Are you aware of other organisations doing this sort of work that we could collaborate with to maximise limited resources?


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