To propose changes to the weekly fees paid in relation to nursing and residential care homes for older people for 2013/14. The report also indicates how fees will change for the next three years prior to a further review of costs.  The date for the next full review will be 2016/17.

THAT:

a)    the Open Book Review approach that has been used, including evaluation of the alternative options and methodology for evolving the Herefordshire model be noted;

b)    the proposed Maximum Usual Price (MUP) (as set out in paragraph 11.2, table 1 of the report) for older people’s residential and nursing care purchased by the council, be approved as the preferred option for further consultation with providers and the involvement of the Health and Social Care Overview and Scrutiny Committee; and

c)    delegated authority be given to the director for people’s services, in consultation with the cabinet member Health & Wellbeing, having due regard to the outcome of the further consultation, to finalise the MUP and undertake a formal procurement exercise.  This procurement exercise shall include the introduction of a new outcome based contract and framework approach, and an annual indexing process, with a view to implementation of this MUP, effective from January 1^st 2014, and a further review scheduled for 2017.

The Council must stay within its available resources but has a duty of care to older people who are placed in care homes to ensure they are properly cared for.

The benchmark review has identified weekly fees paid for nursing and residential care homes are far higher than that of its neighbours, West Midland authorities and comparator authorities. Action is required to ensure payments made to nursing and residential care home providers are fair and provide the requisite quality to clients placed in their care. Implementation of an MUP and a new contract, will contribute to improved market management and consistency of quality and fairness in price. The three year model, reviewed annually, will enable the market to plan their budget effectively and also provide stability to the self-funded market.