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Payment by Results 2013

Payment by Outcomes

Payment by Results (PbR) is central to Government’s plans for changing the way public services are delivered. The heart of the proposal is to allow greater discretion to service providers, replacing centrally imposed targets with a system of payment by results that offer financial awards to agencies delivering services. We envisage this approach will give providers the freedom to innovate to deliver results, paying them according to the outcomes they achieve and for the vulnerable citizens of Birmingham to bring fresh ideas and innovation. PbR also helps to evidence what is working in terms of commissioned services for vulnerable people.

Birmingham is the largest authority in Europe and the UK’s second city and home to an estimated population of over one million. The Supporting People programme delivers (approximately) 98 different prevention services supporting vulnerable people. Our vision in undertaking a PbR model is to ensure it can be implemented across all client groups; it is simple, SMART, transparent and considers the varying needs of different people. The model needs to ensure the outcomes are able to evidence the cost prevention benefit and/or a personal benefit to reflect the Supporting People programme based on the Whole Systems Approach. The PbR element sits within a wider proposed future contracting framework.

During the last 12 months, Supporting People team have been working with a strategically selected group of providers set up as the working group to consider the key principles of the model. Consider the advantages and disadvantages of piloting a PbR model and identified some of the risks and mitigating actions in undertaking a PbR approach could potentially entail.

From 1 April 2013 Supporting People team will be undertaking a virtual PbR pilot across Disabilities, Mental Health, Social Exclusion and Older People client groups. The pilot will run for a 6 month period with 24 provider organisations taking part. The pilot will include both accommodation-based and floating support services.

The pilot will be based on a 90/10 model - 90% paid on Utilisation and 10% paid on outcomes achieved. This approach will minimise risk to the provider sector, particularly to small organisations.

The pilot will end on 30 September 2013.

There will be a mid-point review in early July 2013, with a final evaluation that will be undertaken at the end of the pilot. The evaluation will capture the learning from the different perspectives. It is envisaged that that the learning from the pilot will form part of a wider contracting methodology for future Supporting People contracts.

The evaluation report will be made available at the end of December 2013.

For more information on the Birmingham PbR, please telephone Javaid Iqbal, Commissioning Manager on 0121 303 6138.