News / WCC focus shifts to efficiency and planning

05 October 2009

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Year two of world class commissioning (WCC) will see changes in financial assessments, reflecting the need for efficiency and accurate financial planning as the economic downturn affects NHS funding growth.

Competency 11, which ensures efficiency and effectiveness of spending, will be assessed as part of the core competencies. Competency  6 has been revised and now requires PCTs to prioritise investment in different financial scenarios.

Finance continues to be assessed within governance in WCC, and aims to ensure the PCT’s financial position is aligned with its strategic priorities, rather than conducting a full financial audit.

In year two, 2009/10, the financial assessment will examine five factors, adding robust financial management and sustainability of financial position under different financial scenarios to historical financial management, robustness of planning assumptions and sustainable financial position as a base case. Competency 11 has three sub-competencies: measuring and understanding efficiency and effectiveness of spend; identifying opportunities to maximise efficiency and effectiveness of spend; and delivering sustainable efficiency and effectiveness of spend.

The Department’s acting director general of commissioning and system management, Gary Belfield, said the introduction of competency 11 was a recognition of the coming financial reality.

‘I think WCC is the ideal vehicle to help PCTs and the NHS manage through the economic recession. It’s about high-quality care and value for money,’ he said.

The Department of Health, the Audit Commission and the Care Quality Commission (CQC) have agreed a system to share ratings and evidence to inform WCC, use of resources, the comprehensive area assessment and CQC reviews and inspections.

For example, the Audit Commission’s key line of enquiry 1.3 (financial reporting) will inform the robust financial management element of the WCC financial assessment. Both the sustainable financial position elements of the WCC financial assessment and strategy (consistency with financial plan) will contribute to the use of resources score.

Mr Belfield added the changes reflected the service’s satisfaction with the first year of WCC. In a national evaluation event, interviews and an online survey of more than 300 participants from PCTs and SHAs, 79% agreed WCC had improved PCTs’ financial planning. For year two, only fine-tuning was required.