1. Health & Social Care Digital Service – Market Engagement 1 Introduced by Ben Gregory – HSCIC Head of Procurement Tuesday August 13 th 2013

2. Introduction. Housekeeping. Programme Overview. The Team you’ll meet today. Agenda and Objectives of the day Timeline and expectations.

3. Programme Overview. The Vision – I shall leave John to elaborate… A potted history of NHS Choices. The transition into HSCIC as a delivery service. The future…...

4. The Team you will meet today. NHS England: John Coulthard – SRO Richard Davis – Customer Relations/ PMO Director Arif Govani – Director of Digital Experience Health & Social Care Information Centre: Ben Gregory – Head of Procurement Keith Bradley – Senior Commercial Manager Rebecca McNamara – Senior Business Analyst Barry Russell – Procurement Manager Nisha Parmar – Business Support Officer

5. Agenda. 10:10 Thinking Differently about Health, Public Health and Social Care – John Coulthard, NHS England 10:45 Break for Tea / Coffee 11:00 Commercial and Operating Model Options – Ben Gregory, HSCIC 11:20 Hand out, Questionnaires and Further Activities - Ben Gregory, HSCIC 11.25 Q & A, Close of formal session 11.45 Table Discussions (Scope and Service Options, Commercial and Operating Models, Delivery and Timelines) 12.30 Final Close

6. Today's Objectives. Our chance to formally engage with our markets To get our message out and explain our vision, mission and expectations To offer our supplier base a chance to engage and contribute the developing process To explain our timescales, and dependencies To examine some potential operating models

7. HSDS – Indicative Timeline Market Engagement Procurement route decision reached 10 / 2013 Outline Business Case (OBC) submitted 11 / 2013 Approval of OBC - 12 / 2013 Approval of Full Business Case (FBC) - 03 /2013 Procurement Commences - 12 / 2013 Contract (s) Award - 31/03/14 Set up and transition activities complete 31/12/14

8. Things we know. We want to build on the success of NHS Choices by increasing scale and scope. We want best of breed provision within an agile delivery model The core solution will be centrally funded for a 5 year term. We’re keen to explore social enterprise / alliance contracting. The current solution arrangement will run until March 14.

9. Things we still need to know. What is the market appetite for our preferred option(s)? How should the service(s) be arranged? What’s our transition plan? How best can we support the future market?

10. Introducing……. John Coulthard – Senior Responsible Owner

12. Commercial and Operating Model Options 12 Introduced by Ben Gregory – HSCIC Head of Procurement Tuesday August 13 th 2013

13. What are MY Objectives To deliver a model which improves capability and protects the public interest To deliver a transitioned service which protects the current service credibility whilst delivering a platform for future growth To deliver an efficient flexible service

14. What else besides… To improve the health and functioning of the market for digital Health and Social Care Services To maximise the capability delivered within available budget whilst recognising the true value in key aspects of the service To remove the centre as a barrier to the means of production in public good

15. What about the current service? The range and quality of the content is exceptional – it delivers the users to the current site The current operation is not optimised in commercial/financial terms nor in its production processes The current delivery model will not allow the level of expansion required by the Vision

16. Governance: Funding and Commissioning A role shared between DH and NHS England The commissioner requires an Agent to control and manage the delivery of onward services The commissioner may distribute funds via grants or through procured commissions, or a mixture of the two

17. Controls: Delivery Management The delivery Agent who Controls the development of the service may be a public body such as HSCIC, a private provider or an alternative form of organisation such as a Social Enterprise In order to move away from the current model which does not drive efficiency or exploit latent market capability the controlling Agent should be limited as to the services it Provides

18. Delivery: The Provider Market The distinction between controlling Agent and Provider naturally mitigates against a Prime Contract Model. We have two favoured models therefore: – Leverage – Strategic

19. Leverage Model Is assertive and interventionist within the market Assumes responsibility for Service Design and Integration Assumes low market difficulty and a mature market Focus on price, controls quality through definition and management

20. Strategic Model Releases the market, encourages self determined innovation within providers Abstracts itself from Service Design and Integration tasks Assumes that market requires active support, that maturity is low and barriers exist Focus on added Value and rewards quality

21. A Social Enterprise ? We are actively exploring the attractiveness and options for a Social Enterprise to function as controlling Agent What should the scope of such an organisation be? How would the market react?

22. An Alliance Contract In respect of the Strategic Provider model we are exploring the deployment of a central Alliance contract to deliver the core service platform What does the digital service market know about Alliance contracting? What is the appetite?

23. Where Does That Leave Us? Essentially we are focussing on two key combined models: Turn to Appendices B and C in your hand outs.