Proposals for managing changes to fee payments in 2011/12

Overview

As a result of the severe public sector cuts caused by the recession, within ASSH we have to achieve a reduction in overall expenditure of over £8M per annum over the next two years.  However, we are concerned that this does not compromise the quality of services we commission.

We are therefore looking at a variety of ways for achieving those objectives: including the basis on which we review our fee offers. The consultation puts forward a methodology for amending fee payments based on the relationship between cost and quality, in order to encourage and sustain providers who offer good quality services at the lowest cost.

Why your views matter

In the past provider organisations have told us that they felt imposed upon rather than engaged with in the way we have managed fee uplifts/reductions. The purpose of this consultation is therefore to share our ideas about how we think we might achieve the necessary savings, without compromising quality and to listen to feedback and suggestions from provider organisations.  

What happens next

This is a formal consultation and we would like to hear your views on the proposals. Organisations who wish to take part in the consultation should provide us with their written responses by 11th March 2011.