Purpose

To approve the procurement of a new multi provider partnership framework for the provision of care home placements and related services. The Council is looking to formalise partnership arrangements for a minimum of 500-550 placements across all providers.
Estimated value of up to £320m across the framework term (maximum of 8 years).

Decision

That:

a) the procurement of a Care Home Partnership Framework for adults in Herefordshire be approved at a total estimated cost of up to, but not exceeding, £484.3 million over an 8 year period; and

b) authority be delegated to the Corporate Director for Community Wellbeing to award and enter into contracts with the successful providers following completion of the procurement process; and

c) to approve any operational decisions, extensions, variations and contractual matters within the approved budget and in accordance with the Council's Contract Procedure Rules.

Alternative options considered

1. Do nothing.  This is not recommended as the costs of spot purchased beds are rising.  The council would remain dependent upon reactive spot purchasing arrangements, reducing its ability to:

a.     Forecast demand effectively.

b.     Influence quality and outcomes.

c.      Support provider sustainability.

d.     Plan future capacity.

e.     Respond strategically to increasing demographic pressures.

f.       Support integrated health and care pathways.

1. Recommission the current 9-year-old Unified Contract.  This is not recommended as this would continue spot purchasing and reactive commissioning that does not support long-term market sustainability.  The model does not create certainty for providers regarding future occupancy levels and income streams. This uncertainty may discourage investment in workforce development, service innovation and estate improvement, all of which are necessary to meet future demand.