To approve a three year fee uplift settlement for care home placements from 1 April 2017 to 31 March 2020.

THAT:

(a)  a three year settlement model is agreed for 3 April 2017 until 31 March 2020, as detailed in the table below;

(b)  all care home spot purchase placements and block contracts (excluding block contracts subject to different contractual arrangements and those on the old ‘usual nursing rate’) are uplifted; and

(c)  delegated authority be given to the director for adults and wellbeing in consultation with the cabinet member to amend the increase if national pressures trigger a review.

The proposed recommendations will ensure that the council is able to fulfil its role in shaping and supporting the market place as identified under the Care Act 2014 in order to support the wider care market in delivering a range of sustainable, high quality services to meet the demands of the community now and in the future.

The council does not pay any increase to care home providers. This is not recommended as the council is required to consider an annual increase as provided for in the contract, whilst also taking into consideration the wider economic climate. Analysis shows there have been a number of increases in the cost of operating care homes. The recommendation represents a balance between recognising the cost pressures facing care home providers and the decreasing funding available to the council.

Continue to negotiate the fee increase on an annual basis. This is not recommended as the council needs to plan and consider the costs pressures up to 2020 taking into account its legal duties and responsibilities. The three year proposal will offer providers some certainty on the cost of placements and allow for effective business planning in a timely manner.