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