Issue details

21/00104 - Older Persons Residential and Nursing Contract Extension and Variation

Proposed decision 

Extend the current contract in line with contract conditions for a further two years from 1 April 2022 to 31 March 2024; include a modification notice to the contract to allow a separate Lot to be added that enables the purchasing of pathway 3 discharge beds on behalf of NHS Kent and Medway Clinical Commissioning Group and delegate authority to the Corporate Director Adult Social Care and Health to take relevant actions, including but not limited to finalising the terms of and entering into required contract or other legal agreements, as necessary to implement the decision.

 

Decision Details

The Older Persons Residential and Nursing Contract shall expire automatically on the 31 March 2022 unless the council exercise the right, by giving written notice to the Provider, to extend the contract for a further two years from 1 April 2022 to 31 March 2024, giving up to 3 (three) months’ notice to the Provider (or such other time agreed between the Parties).

 

The ambition is to work in collaboration with the Kent and Medway Clinical Commissioning Group to support a joined-up approach for purchasing assessment beds for Health across the county. This will support timely discharge from hospital to a pathway 3 assessment beds. A modification notice will be placed on the contract to enable an additional Lot to be added to enable Providers to bid to provide beds to the Kent and Medway Clinical Commissioning Group. The current plan is to have this in place from 1 April 2022 subject to approval, governance and agreement from the Kent and Medway Clinical Commissioning Group and the Council.

 

The current Older Persons Residential and Nursing Contract commenced in April 2016 with an initial four-year contract period. The Council may, by giving written notice to the Provider extend this Contract for such further period or periods of up to 4 (four) years as agreed between the Parties. The contract is by way of a Dynamic Purchasing System (DPS), allows the Council to add new providers during the lifetime of the contract having passed the relevant selection criteria and provide an indicative tender which meets the specification.

 

The contract includes five Lots that providers can tender for;

  • Lot 1 CQC Registered Residential Homes or “Care Homes without nursing” for the provision of Long Term, Short Term and respite care services;
  • Lot 2 CQC Registered Nursing Homes or “Care Homes with nursing” for the provision of Long Term, Short Term and respite care services;
  • Lot 3 Providers of Bariatric care services;
  • Lot 4 Call off Block Contract for the provision of multiples of two beds for short term Respite care services across Kent; and
  • Lot 5 Residential or Nursing Care Home providers able to offer ‘day’ services.

 

Reason for the Decision

The current Older Persons Residential and Nursing Contract will automatically expire on the 31 March 2022 unless the council exercise the right, by giving written notice to the Provider, to extend the contract for a further two years from 1 April 2022 to 31 March 2024, giving up to 3 (three) months’ notice to the Provider (or such other time agreed between the Parties).

 

Extending the contract by two years to 31 March 2024 will provide the necessary time and resource to consider the integration of the wider health and social care system and new models of care that ensure the right residential accommodation is available for the people of Kent.

 

Following approval and governance requirements being signed off from the Council and the Kent and Medway Clinical Commissioning Group a modification notice will be placed to enable an additional Lot to be added to the contract and enable Providers to bid to provide beds to the Kent and Medway Clinical Commissioning Group. The current plan is to have this in place from 1 April 2022. This addition will further allow joined up working across Health and Social Care with the Care Home market and reduce pressures created through the system not working in a collaborative manner.

Decision type: Key

Reason Key: Expenditure or savings of more than £1m;

Decision status: For Determination

Division affected: (All Division);

Notice of proposed decision first published: 18/11/2021

Decision due: Not before 17th Dec 2021 by Cabinet Member for Adult Social Care and Public Health

Department: Social Care, Health & Wellbeing

Consultees

The proposed decision will be discussed at the Adult Social Care Cabinet Committee meeting on 1 December 2021

Financial implications: The total cost of the Older Persons Residential and Nursing contract is approx. £100M per annum and £200M for the remainder of the contract. The guide price for the beds will be reviewed and implemented on 1 April 2022 as part of the annual bed price review

Legal implications: Although the council has set its Guide Prices, the design of the contract is for the market to set an indicative (not to exceed) price when joining. Underlying sustainability of the social care market for older people is a key factor when analysing the costs of care. Legal advice has been sought in relation to the Kent and Medway Clinical Commissioning Group joining the arrangement and it has been advised that this can be done by issuing a modification notice at the time of the extension to allow the new services to be procured.

Equalities implications: An Equality Impact Assessment was undertaken as part of the original tender process and will be refreshed as part of the extension. A copy is available on request.

Agenda items