Decision details

To approve the recommendation to award a number of block contracts for Residential Care Services following a competitive tender.

That a contract for Residential Care Services, commencing in September 2017 be awarded to the Tenderer A as detailed in the exempt annexe to the report of the Director of Adult Social Care, Health & Housing.

Since 2013/14 the Council has seen an overall reduction of 205 residential and nursing beds within the Borough, and a further reduction of nearly 400 beds in homes previously used outside the Borough. Whilst the demand has not reduced, the supply has, which has led to much higher prices than the Council should be paying. Recent cost modelling evidences that the situation is getting worse.

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

As part of looking at options to contain rising costs, discussions were held with a number of new-build care homes locally, who are currently seeking business from the private sector and local authorities to fill their beds. These discussions evidenced that savings could be made through purchasing through block contracts.

Not to enter into block contract(s) and continue to purchase through spot contracts, however, this would mean that the Council would miss the opportunity to make the savings indicated in the Confidential Annexe to this report, thereby reducing some of the pressure on this budget.

None.

Not applicable.

None.