Outcome Based Commissioning

Leicester City Clinical Commissioning Group wanted to develop an outcome based commissioning model for contracting health services. After a competitive tender the CCG appointed Methods Business and Digital Technology Limited, in partnership with In-Form Solutions and Optimity Advisors, to prepare an Outline Business Case (OBC) for developing the model. This combined  team consisted of experienced project managers, health economists, clinicians, finance commissioning and procurement specialists.

Leicester City CCG were one of the first CCGs developing this model within the country and the project was highly controversial in that it proposed a completely new model of contracting based on health quality outcomes, rather than units of activity. Our team undertook wide-ranging engagement with all stakeholders within the health economy, as well as with a number of key national bodies such as Monitor, the Care Quality Commission (CQC) and the Trust Development Authority (TDA). The team utilised their multi-disciplinary skills to develop the OBC, identifying and agreeing the matrix of clinical outcomes, developing new contracting and financial models as well as producing a fully costed and detailed action and communication plan for delivery. The OBC was successful in gaining approval by the Leicester City CCG Board.

Separately, the CCG engaged In-Form Solutions to help to co-ordinate and progress the business case and we provided valuable financial, commissioning and project management support to the CCG.

The activities and deliverables achieved included:

• An Outline Business Case which was agreed by the Board.
• Full engagement with all stakeholders.
• A series of workshops.
• Project management support.
• An innovative financial model based on patient age demonstrating the five-year financial forecast for the CCG and the financial benefit.
• Significant health improvements resulting from the new commissioning model.
• An economic cost and benefit analysis linked to the financial model.
• Communications Support.