Business planning and affordability analysis for healthcare in SE London

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Client SE London Acute Commissioning Unit (SELACU)
Dates 2010
Sector(s)UK Health
Service(s)Strategy & Finance

CEPA provided business modelling support to the South East London Acute Commissioning Unit – a recently created acute commissioning vehicle for the six Primary Care Trusts in South East London. SELACU was one of six sector organisations set up by NHS London to improve the health of Londoners by leading improvements in the commissioning and performance of acute services.

We were asked to show the potential financial impact of some different organisational designs (savings initiatives), including shifting episodes of care into lower acute settings such as a polyclinics or a community setting.

We worked with PCTs to identify and quantify cost pressures, forward commitments, productivity and efficiency proposals and savings plans, to understand whether financial balance could be maintained. Our modelling incorporated functionality to aggregate PCT commissioning intentions into a commissioning plan for each acute provider in SE London, in order to demonstrate how efficiency and savings plans at PCT level would impact upon the provider landscape.

We undertook the financial modelling across PCTs on a consistent basis, which allowed us to aggregate their positions to produce a sector-wide model for SELACU and present the total savings across the sector from the proposed initiatives. Our work helped to inform the development of PCT acute and non-acute service delivery strategies and provided a framework for testing the financial viability of efficiency and reform plans. The outputs of our modelling were used to populate a detailed sector-wide strategy for the commissioning of acute services in SE London as part of the five year strategic plan.