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Practice Budgets and Incentive Arrangements in South Hams & West Devon PCT Caroline Price
Why Implement Practice Budgets and Incentive Schemes? Clinical Freedom to GP practices Allows PCT to lever strategic change Finite resources within the NHS Financial Flows Patient Choice
What have we achieved? Practice level age standardised referral reports Practice level expenditure reports Practice level budgets
Practice Budgets Relate to expenditure reports Services mainly HCHS Derived using 2/3 historical costs and 1/3 equity Equity element derived from weighted capitation formula
Insurance and Incentive Scheme Arrangements Expensive Patients Viable size Timing of incentive payments Link to services covered within Financial Flows
Incentive Scheme Proposal 1/3 to practice 1/3 to PCT 1/3 for performance improvement Capped Payment to practices based on £2 per patient
What can the incentive payment be used for? Materials or equipment For treatment For convenience Non-recurring staff costs Initiatives to improve healthcare
Next Steps Include further services within expenditure reports Refine budget setting process Refine incentive scheme
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