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Joint Associate Director of Commissioning - Tim Golby
>To implement a new fee model for care homes for older people, applicable to all new business from 4th June 2018.
Following engagement and formal consultation with the care homes market, the following decision was taken:
To implement a new fee model, allocating fees according to hours of care needed instead of banded rates, from 4th June 2018.
Devon County Council sets an annual fee rate which reflects the cost of care it expects to pay for care and accommodation of individuals with an eligible need.
The Council has an established financial model which it has used over a number of years to calculate the cost of care. The essential elements of this model do not change from year to year, but the figures associated with those elements do change to reflect inflation and changes in the National Living Wage and National Minimum Wage.
Following extensive engagement with the care homes market, the Council has decided to remove the banded rates for new placements and each new person will instead have an individual fee matched to their care needs in terms of hours of care. This approach doesn’t make any substantive change to the financial model established through consultation in 2014/15, rather it simplifies the process of fee setting and adds transparency.
The Council understands its duty to maintain a sustainable market and has therefore also removed the Fair Market Pricing from the fee model to support this aim.
During February and March 2018, the Council consulted on its proposals. The consultation received limited responses, and all were considered by officers. One issue was considered substantive enough to require a change to the proposed increase: to further uplift the hourly rate element of the fee to allow for all staff to be paid at least the national living wage for age 25 and over, regardless of the age mix of the staff.
The Decision Maker has given due regard to the Consultation Document, the Equality Impact Assessment, the Financial Model, market conditions and all consultation feedback. Following due consideration of these documents, the Decision Maker reached the decision set out above
- To continue with the banded rates. This was rejected following extensive market engagement undertaken as part of the review of the fee model.
- To make an award greater than the offer. Rejected as the offer is fair and reasonable and provides for inflationary pressures included in the model.
- To award no increase in fees from the 2017/18 levels. This was rejected as being unreasonable in light of increased costs being experienced by providers through increases in National Living Wage and National Minimum Wage and inflation
A copy of this decision and any supporting documentation considered by the Officer taking this decision may also be made available or inspection by the public at the Council’s Offices or posted upon payment of any copying and postage charges. Any member of the public wishing to take up either of these options is asked to please ring 01392 382888 or email: firstname.lastname@example.org