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Health & Social Care Digital Service – Market Engagement

Introduced byBen Gregory – HSCIC Head of Procurement

Tuesday August 13th 2013

Introduction.

• Housekeeping.

• Programme Overview.

• The Team you’ll meet today.

• Agenda and Objectives of the day

• Timeline and expectations.

Programme Overview.

• The Vision – I shall leave John to elaborate…

• A potted history of NHS Choices.

• The transition into HSCIC as a delivery service.

• The future…...

The Team you will meet today.

NHS England:• John Coulthard – SRO• Richard Davis – Customer Relations/ PMO Director• Arif Govani – Director of Digital Experience

Health & Social Care Information Centre:• Ben Gregory – Head of Procurement• Keith Bradley – Senior Commercial Manager• Rebecca McNamara – Senior Business Analyst• Barry Russell – Procurement Manager• Nisha Parmar – Business Support Officer

Agenda.

10:10 Thinking Differently about Health, Public Health and Social Care – John Coulthard, NHS England10:45 Break for Tea / Coffee11:00 Commercial and Operating Model Options – Ben Gregory, HSCIC11:20 Hand out, Questionnaires and Further Activities - Ben Gregory, HSCIC11.25 Q & A, Close of formal session11.45 Table Discussions (Scope and Service Options, Commercial and Operating Models, Delivery and Timelines)12.30 Final Close

Today's Objectives.

• Our chance to formally engage with our markets

• To get our message out and explain our vision, mission and expectations

• To offer our supplier base a chance to engage and contribute the developing process

• To explain our timescales, and dependencies

•To examine some potential operating models

HSDS – Indicative Timeline

• Market Engagement• Procurement route decision reached10 / 2013

• Outline Business Case (OBC) submitted11 / 2013

Approval of OBC - 12 / 2013

Approval of Full Business Case (FBC) - 03 /2013

Procurement Commences - 12 / 2013

Contract (s) Award - 31/03/14

Set up and transition activitiescomplete 31/12/14

Things we know.

• We want to build on the success of NHS Choices by increasing scale and scope.

• We want best of breed provision within an agile delivery model

• The core solution will be centrally funded for a 5 year term.

• We’re keen to explore social enterprise / alliance contracting.

• The current solution arrangement will run until March 14.

Things we still need to know.

• What is the market appetite for our preferred option(s)?

• How should the service(s) be arranged?

• What’s our transition plan?

• How best can we support the future market?

Introducing…….

John Coulthard – Senior Responsible Owner

Commercial and Operating Model Options

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Introduced byBen Gregory – HSCIC Head of Procurement

Tuesday August 13th 2013

What are MY Objectives

• To deliver a model which improves capability and protects the public interest

• To deliver a transitioned service which protects the current service credibility whilst delivering a platform for future growth

• To deliver an efficient flexible service

What else besides…

• To improve the health and functioning of the market for digital Health and Social Care Services

• To maximise the capability delivered within available budget whilst recognising the true value in key aspects of the service

• To remove the centre as a barrier to the means of production in public good

What about the current service?

• The range and quality of the content is exceptional – it delivers the users to the current site

• The current operation is not optimised in commercial/financial terms nor in its production processes

• The current delivery model will not allow the level of expansion required by the Vision

Governance: Funding and Commissioning

• A role shared between DH and NHS England

•The commissioner requires an Agent to control and manage the delivery of onward services

•The commissioner may distribute funds via grants or through procured commissions, or a mixture of the two

Controls: Delivery Management

• The delivery Agent who Controls the development of the service may be a public body such as HSCIC, a private provider or an alternative form of organisation such as a Social Enterprise

• In order to move away from the current model which does not drive efficiency or exploit latent market capability the controlling Agent should be limited as to the services it Provides

Delivery: The Provider Market

• The distinction between controlling Agent and Provider naturally mitigates against a Prime Contract Model.

• We have two favoured models therefore:

–Leverage–Strategic

Leverage Model

• Is assertive and interventionist within the market

• Assumes responsibility for Service Design and Integration

• Assumes low market difficulty and a mature market

• Focus on price, controls quality through definition and management

Strategic Model

• Releases the market, encourages self determined innovation within providers

• Abstracts itself from Service Design and Integration tasks

• Assumes that market requires active support, that maturity is low and barriers exist

• Focus on added Value and rewards quality

A Social Enterprise ?

• We are actively exploring the attractiveness and options for a Social Enterprise to function as controlling Agent

• What should the scope of such an organisation be?

• How would the market react?

An Alliance Contract

• In respect of the Strategic Provider model we are exploring the deployment of a central Alliance contract to deliver the core service platform

• What does the digital service market know about Alliance contracting?

• What is the appetite?

Where Does That Leave Us?

• Essentially we are focussing on two key combined models:

Turn to Appendices B and C in your hand outs.