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Agenda item

Developing a Stable Adult Social Care Market in Sheffield

Report of the Executive Director, People Services

Decision:

10.1

The Executive Director, People Services submitted a report sets out the process that the Council has followed to propose fair and sustainable fee rates for independent sector care home, home care, extra care and supported living providers in Sheffield for the financial year 2018-19.

 

 

10.2

RESOLVED: That Cabinet:-

 

 

 

(a)

approves a single fee for residential and nursing home providers on the Council’s standard contracted and framework rate of £463 per bed per week (excluding nursing costs) based on the results of the open book cost of care exercise completed in the financial year 2017/18. See table below for details of % uplift

 

 

 

 

 

Category

Current Rate

(Environmental standard

Current Rate

(Environmental Enhanced)

2018-19

Rate

%
Increase

 

 

Residential – Standard

£389

£391

£463

18 - 19%

 

 

Residential – High Dependency

£426

£430

£463

8 - 9%

 

 

Residential – EMI

£434

£438

£463

6 - 7%

 

 

Nursing – Standard excluding FNC

£433

£440

£463

5 - 7%

 

 

Nursing – Enhanced excluding FNC

£447

£453

£463

2 - 4%

 

 

 

 

(b)

 approves an inflationary uplift to fee rates of 3.95% for home care and supported living providers on the Council’s standard contracted and framework rate;

 

 

 

 

(c)

Agrees to align the ‘care’ element of extra care fees for the four Council contracted providers to the corresponding supported living rate (where care is provided in one geographic location) and pay the ‘support’ element based on itemised delivery of support activities;

 

 

 

 

(d)

delegates authority to the Executive Director, People Services in consultation with the Director of Adult Services and the Cabinet Member for Health and Social Care to agree any appropriate and proportionate fee increases requested by recipients of Direct Payments and care providers who are not on the Council’s standard contracted and framework rate on a case-by-case basis; and

 

 

 

 

(e)

delegates authority to the Executive Director, People Services in consultation with the Director of Adult Services and the Cabinet Member for Health and Social Care to take all other necessary steps not covered by existing delegations to achieve the outcomes outlined in the report.

 

 

 

10.3

Reasons for Decision

 

 

10.3.1

To develop and maintain a stable adult social care market in Sheffield by ensuring that the fees paid by the Council for adult social care in the City of Sheffield are uplifted in line with the cost of delivering care in the city including inflationary pressures in 2018/19.

 

 

10.4

Alternatives Considered and Rejected

 

 

10.4.1

All options were appraised taking into account the following. Further details can be found in the appendix to the report.

 

·                  Provider feedback, for example from engagement events and planned consultations

·                            Market factors

·                            Benchmarking with comparable Local Authorities

·                  Open Book Costs of Care exercises

·                            Current and projected supply and demand

·                            The financial position of the Council

 

 

10.4.2

Care Homes: There were two options considered for the 2018/19 care home fee uplift with option 3 being the recommended option:

 

 Do nothing and expect providers to absorb all inflationary costs

 

Option 2: Increase the fees paid to providers to take into account increases in minimum wage and the underlying rate of inflation.

 

Option 3: Increase the fee rates paid to providers using the results of the open book cost of care exercise as well as increases in minimum wage and the underlying rate of inflation.

 

 

10.4.3

Home Care and Supported Living: There were two options considered for the 2018/19 uplifts in home care and supported living with option 1 being the recommended option:

 

Option 1: Increase the fees paid to providers to take into account increases in minimum wage and the underlying rate of inflation.

 

Option 2: No increase to the fees paid to providers in the context of having established a cost of care and new framework rates in 2017 for home care and supported living and no contractual requirement to increase extra care rates ahead of retendering this in 2018.

 

 

 

10.4.4

Extra Care: There were three options considered for the 2018/19 uplifts in extra care with option 1 being the recommended option:

 

5.4.1 Option 1: Increase the care element of the fees paid to bring this in line with the supported living discounted rate.

5.4.2 Option 2: Increase the care element of the fees paid by 3.95% to take into account increases in minimum wage and the underlying rate of inflation.

5.4.3 Option 3: No increase to the fees paid to providers in the context of having tendered at the current rate with no contractual requirement to receive an uplift.

 

 

10.5

Any Interest Declared or Dispensation Granted

 

 

 

None

 

 

10.6

Reason for Exemption if Public/Press Excluded During Consideration

 

 

 

None

 

 

10.7

Respective Director Responsible for Implementation

 

 

 

Jayne Ludlam, Executive Director, People Services

 

 

10.8

Relevant Scrutiny and Policy Development Committee If Decision Called In

 

 

 

Healthier Communities and Adult Social Care

 

 

 

 

Minutes:

10.1

The Executive Director, People Services submitted a report setting out the process that the Council has followed to propose fair and sustainable fee rates for independent sector care home, home care, extra care and supported living providers in Sheffield for the financial year 2018-19.

 

 

10.2

RESOLVED: That Cabinet:-

 

 

 

(a)

approves a single fee for residential and nursing home providers on the Council’s standard contracted and framework rate of £463 per bed per week (excluding nursing costs) based on the results of the open book cost of care exercise completed in the financial year 2017/18. See table below for details of % uplift

 

 

 

Category

Current Rate

(Environmental standard

Current Rate

(Environmental Enhanced)

2018-19

Rate

%
Increase

 

 

Residential – Standard

£389

£391

£463

18 - 19%

 

 

Residential – High Dependency

£426

£430

£463

8 - 9%

 

 

Residential – EMI

£434

£438

£463

6 - 7%

 

 

Nursing – Standard excluding FNC

£433

£440

£463

5 - 7%

 

 

Nursing – Enhanced excluding FNC

£447

£453

£463

2 - 4%

 

 

(b)

 approves an inflationary uplift to fee rates of 3.95% for home care and supported living providers on the Council’s standard contracted and framework rate;

 

 

 

 

(c)

agrees to align the ‘care’ element of extra care fees for the four Council contracted providers to the corresponding supported living rate (where care is provided in one geographic location) and pay the ‘support’ element based on itemised delivery of support activities;

 

 

 

 

(d)

delegates authority to the Executive Director, People Services, in consultation with the Director of Adult Services and the Cabinet Member for Health and Social Care, to agree any appropriate and proportionate fee increases requested by recipients of Direct Payments and care providers who are not on the Council’s standard contracted and framework rate on a case-by-case basis; and

 

 

 

 

(e)

delegates authority to the Executive Director, People Services, in consultation with the Director of Adult Services and the Cabinet Member for Health and Social Care, to take all other necessary steps not covered by existing delegations to achieve the outcomes outlined in the report.

 

 

 

10.3

Reasons for Decision

 

 

10.3.1

To develop and maintain a stable adult social care market in Sheffield by ensuring that the fees paid by the Council for adult social care in the City of Sheffield are uplifted in line with the cost of delivering care in the city including inflationary pressures in 2018/19.

 

 

10.4

Alternatives Considered and Rejected

 

 

10.4.1

All options were appraised taking into account the following. Further details can be found in the appendix to the report.

 

·                  Provider feedback, for example from engagement events and planned consultations

·                            Market factors

·                            Benchmarking with comparable Local Authorities

·                  Open Book Costs of Care exercises

·                            Current and projected supply and demand

·                            The financial position of the Council

 

 

10.4.2

Care Homes: There were two options considered for the 2018/19 care home fee uplift with option 3 being the recommended option:

 

 Do nothing and expect providers to absorb all inflationary costs

 

Option 2: Increase the fees paid to providers to take into account increases in minimum wage and the underlying rate of inflation.

 

Option 3: Increase the fee rates paid to providers using the results of the open book cost of care exercise as well as increases in minimum wage and the underlying rate of inflation.

 

 

10.4.3

Home Care and Supported Living: There were two options considered for the 2018/19 uplifts in home care and supported living, with option 1 being the recommended option:

 

Option 1: Increase the fees paid to providers to take into account increases in minimum wage and the underlying rate of inflation.

 

Option 2: No increase to the fees paid to providers in the context of having established a cost of care and new framework rates in 2017 for home care and supported living and no contractual requirement to increase extra care rates ahead of retendering this in 2018.

 

 

 

10.4.4

Extra Care: There were three options considered for the 2018/19 uplifts in extra care with option 1 being the recommended option:

 

Option 1: Increase the care element of the fees paid to bring this in line with the supported living discounted rate.

Option 2: Increase the care element of the fees paid by 3.95% to take into account increases in minimum wage and the underlying rate of inflation.

Option 3: No increase to the fees paid to providers in the context of having tendered at the current rate with no contractual requirement to receive an uplift.

 

 

 

 

 

 

Supporting documents: