Decision details

That the procurement plan for Adult Social Care, Health and Housing to enter into a maximum of four block contracts to purchase a maximum of twenty two nursing beds with local providers be approved and that the contact award decision be delegated to the Executive Member for Adult Services, Health and Housing.

1.            Since 2013/14; the council has seen an overall reduction of 205 residential and nursing beds. Whilst the demand has not reduced, the supply has, which has led to much higher prices than we should be paying. Recent cost modelling evidences that the situation is getting worse.

2.         Whilst placement costs are becoming unsustainable, they are also becoming increasingly less reflective of a client’s needs and more about how much a provider can get paid for a bed. Other Berkshire local authorities also report experiencing the same problems, as care managers vie for the limited beds available, regardless of the true cost of care and value for money. 

1.    To approach current nursing providers in the market and negotiate better rates.

            A large number of beds are now being sold privately at well above market value, leaving providers less inclined to sell to social services or enter into a block contract at competitive rates. Following several conversations with local providers and other Berkshire Commissioners; this option does not seem realistic without a shift in the current supply/demand climate.

2.    To adopt a similar approach to West Berkshire Council’s Residential & Nursing Care Placement Policy (2012-ongoing), which has helped them to maintain sustainable rates. Among other things, the policy recognises:

·         that they do not have enough affordable supply to meet demand within borough;

·         that the ability to have services available from a wider geographical market means that they are better able to manage demand within existing resources and provide enhanced choices for their residents;

·         local authorities may take their resources into account when considering how to meet needs.

            Whilst it would be beneficial to seek to implement something similar to this policy in addition to the block contract option, it cannot immediately fix the problems that we are facing and would be more of a long-term solution.

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