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OPTIONS for IN-HOUSE SOCIAL CARE SERVICES SCOTTISH BORDERS COUNCIL 30 January 2014

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OPTIONS for IN-HOUSE SOCIAL CARE SERVICES SCOTTISH BORDERS COUNCIL 30 January 2014 ITEM 8 OPTIONS FOR IN-HOUSE SOCIAL CARE SERVICES Report by Chief Executive SCOTTISH BORDERS COUNCIL 30 January 2014 1 PURPOSE AND SUMMARY 1.1 This report details the options appraisal process undertaken to consider more effective models for direct Social Work provided services along with a recommended option to progress to a detailed business case for a Council owned arms length organisation. 1.2 This report details the range of options considered as alternative models for service delivery of social care services and makes a recommendation to progress to a detailed business case to move towards a new model of service delivery. The recommended option is a Council owned Arms length organisation (Local Authority Trading Company or Limited Liability Partnership). This approach will enable ongoing Council control over the business that provides the services yet realise financial efficiencies and savings and ensure ongoing quality of services is maintained. 2 RECOMMENDATIONS 2.1 I recommend that the Council agree that:- (a) a full business case is completed to progress the recommended option of an LATC or LLP. (b) a further report is considered by the Council in Summer 2014 prior to further implementation of the revised model Scottish Borders Council, 30 January 2013 1 3 BACKGROUND 3.1 In line with other Councils, Scottish Borders Council faces considerable financial challenges and needs to modernise and streamline services to ensure sustainability and affordability of public services. In Social Work, it was agreed that work was needed to explore new service models for the delivery of directly provided services in order to assess the opportunities to maintain quality democratic control yet realise financial efficiencies and savings. 3.2 A Project Board was established with representatives from social work, Legal, HR and the NHS and a specialist consultancy firm, Care & Health Solutions, was commissioned to undertake a detailed option appraisal which is attached in Appendix 1. Care & Health Solutions is a consultancy firm with expertise in this area and who have worked for a number of Councils in Scotland and England. 3.3 To complete the options appraisal the consultants worked closely with the project board to agree the range of options to be considered, the scope and appraisal criteria. 3.4 The range of options considered included: (a) Outsourcing provision- tender services to an external provider (b) Continue In-House provision (c) Community Interest Company – develop a new trading company with a range of stakeholders (d) Local Authority Trading Company (e) Limited Liability Partnership 3.4.1 A comprehensive summary of each of these options can be found within the attached options appraisal report. 3.4.2 Both (d) and (e) models involve the development of a new company wholly controlled by the Council, offering the tax benefits and able to offer some services for private purchase. 3.5 The proposed services identified in scope include: Services for Older People LD Adults x Homecare x Day Centres x Shopping & Delivery Service x Community Support (Hawick) x Dementia Service x Night Support PD Adults x Residential Homes x Ability Centre (Galashiels)* x Day Care Services x Bordercare – Telecare Mental Health Services * x Extra Care Housing x Community Support x Resource Centre Community Equipment Service Scottish Borders Council, 30 January 2013 2 Those services marked with * require further review before inclusion can be confirmed. The review would take place in the business case stage. The total budget of a new organisation would be £17.3m with a total staffing complement of 590.66 FTE. These figures may change during the preparation of the Business Case and as the scope is finally agreed. 3.6 Evaluation criteria were agreed which include: Ref Quality Q1 Ability to maximise choice and control for service users Q2 Safeguard services for those with very complex needs and ensure a service of last resort Q3 Makes effective use of Council’s partners Q4 Improves outcomes for service users Ref Cost C1 Achieves value for money for the Council C2 Ability for the Council to achieve planned savings C3 Achieves least risk to the Council financially, in reputation, and politically in case of failure C4 Maximises the Council’s ability to generate income Ref Governance and Flexibility G1 Best interests of the citizens of Scottish Borders G2 Democratic scrutiny G3 Flexible enough to accommodate other services at a later stage G4 Can accommodate new local and national policy and builds flexibility and responsiveness within the market Ref Acceptability to Stakeholders S1 Service Users, Carers and User/Carer Organisations S2 Staff S3 Partners 3.7 The benefits and risks of each option are detailed in Appendix 1 and a summary of the key financial risks and benefits is highlighted below. Scottish Borders Council, 30 January 2013 3 3.8 The recommended options for further consideration and progression to a detailed business case are those of the Local Authority Trading Company and Limited Liability Partnership. These models offer very similar advantages but there are some differences in terms of corporation tax benefits that need to be further explored as part of the business case. Both of these options ensure that the Council remain as the major stakeholder and therefore key decisions in relation to investment, and significant operational decisions. 4 IMPLICATIONS 4.1 Financial In the Council 5 year financial plan efficiency savings of 617k for 2015/16 and 637k for 2016/17 has been identified which it is anticipated will be realised with the move to a new delivery model. This is based on data from other Local Authority areas who have successfully implemented the new arrangements and where a 10% overall efficiency has been achieved through changes to business processes, more effective management of staff and the ability to sell services and thereby bring in additional income. 4.2 Staffing The move to an LATC or LLP would involve a transfer of staff to a new organisation on existing terms and conditions. However the new Scottish Borders Council, 30 January 2013 4 arrangement would enable staff to adopt a new culture and new ways of working. Full consultation and communication with staff will take place as part of the ongoing business case. 4.3 Risk and Mitigations (a) The attached appendix highlights in detail the risks with each option as part of the full option appraisal. (b) There is a risk that if a new model is not implemented financial efficiencies in Social Work will not be realised resulting in potential service reductions in order to make savings. (c) With a move to any new business there is a minimal risk of service failure. However, given this is a Council owned business the service can be transferred back In-House if required at any point. (d) Doing nothing is not an option. 4.4 Equalities No equality issues are anticipated with the preferred delivery models which aim to continue to provide high quality care services for people in the Borders and their carers. However, a full Equalities Impact Assessment will be carried out as part of the detailed business case. 4.5 Acting Sustainably Current in-house provision will increasingly become unsustainable with the increase in use of Direct Payments and Self Directed Support. No other economic, social or environmental effects have been identified. 4.6 Carbon Management N/A 4.7 Rural Proofing Any new service delivery model will need to ensure that services can be provided effectively across the Borders. 4.8 Changes to Scheme of Administration or Scheme of Delegation No changes to the Scheme of Administration or Scheme of Delegation 5 CONSULTATION 5.1 The Chief Financial Officer, the Head of Corporate Governance, the Head of Strategic Policy, the Head of Audit and Risk, the HR Manager and the Clerk to the Council have been consulted and their comments are incorporated in the report. 5.2 There have been initial discussion with unions, managers and stakeholders but further consultation will be a key element of the development of the business case should this be approved. Approved by Chief Executive Signature ………………………………….. Scottish Borders Council, 30 January 2013 5 Author(s) Name Designation and Contact Number Elaine Torrance Programme Director for Health & Social Care Integration Tel: 01835 825080 Background Papers: Nil Previous Minute Reference: Nil Note – You can get this document on tape, in Braille, large print and various computer formats by contacting the address below. Elaine Torrance can also give information on other language translations as well as providing additional copies. Contact Elaine Torrance, Social Work, Scottish Borders Council, Council Headquarters, Newtown St. Boswells, Melrose, TD6 OSA. Tel: 01835 825080 [email protected] Scottish Borders Council, 30 January 2013 6 Scottish Borders Council Options Appraisal of Alternative Service Delivery Models for In-House Adult Social Care Services Executive Summary and Options Appraisal Care and Health Solutions Ltd January 2014 Table of Contents 1 EXECUTIVE SUMMARY 3 2 INTRODUCTION 14 3 METHODOLODY 16 4 DEMAND AND LOCAL CONTEXT 23 5 SCOPE OF SERVICES TO BE INCLUDED 27 6 OPTIONS FOR ALTERNATIVE SERVICE DELIVERY MODEL 30 7 HIGH LEVEL FINANCIAL ASSESSMENT 32 8 OPTIONS APPRAISAL 42 9 CONCLUSION AND RECOMMENDATION 46 Care and Health Solutions - Scottish Borders Council Options Appraisal for Alternative Delivery Models for In-House Adult 2 Social Care Services. January 2014 1. Executive Summary 1.1 Purpose of Report This is the report commissioned by Scottish Borders Council on the Options Appraisal by Care & Health Solutions to assess the relative merits of alternative models for the delivery of adult social care services within current SBC in-house portfolio. It also provides a view of the future potential to create synergies for development of a wider range of adult social care which are crucial considerations in ensuring future sustainability.
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