What is new in the network DES specification and guidance?

Last Friday (29th March) the new Network Contract DES was published.  Six documents in all, and well over a 100 pages of weekend reading (my life is basically one big party).  Much of it restated what we already knew, but I will focus here on the important new things it contained.

There are a number of key changes to the submission requirements.  There has been some talk about the sizes of networks since the new GP contract was published, and how fixed the 30-50,000 population is.  More flexibility is now permitted for the upper end of the range, and where commissioners do agree to larger network sizes, “the PCN may be required to organise itself operationally into smaller neighbourhood teams that cover population sizes between 30 and 50,000”.  There can also be changes to network memberships after the 1st July, but these will require 28 days’ notice, approval from the commissioner, and will only start the quarter after approval is received.

The network agreement now does not have to be submitted by the May 15th deadline, but by the end of June.  Interestingly, it is in a mandatory form (one of the six documents published is the “Mandatory Network Agreement”), a theme reinforced by lines like “we agree that the wording in the clauses to this agreement may not be varied unless a national variation is published”.  There are, however, seven schedules at the end which do allow some variation, and, frankly, seem to me to mean that most networks will need the extended deadline to agree them.  For those interested in hypothetical future scenarios the agreement also includes quite a bit on (amongst other things) the process for leaving/joining networks, expulsion from, dissolution of, and dispute resolution.

More clarity is also provided on who can and cannot be the accountable clinical director.  It can be a clinician (i.e. not just a GP), but they have to be practising within the network area (no out of area leaders allowed).  Four options are suggested for the selection process: election, mutual agreement, selection, and rotation within a fixed term (the latter presumably the last option for those areas where no one is willing to step forward).

What is also new is networks have to be ready to provide extended hours from July 1st, including having in place “appropriate data sharing arrangements”.  If this is done, and the network agreement is completed and signed, the PCN will be considered “established” (a term eerily reminiscent of “authorised” for those still bearing the CCG set-up scars).  Any delays in becoming established will affect payments, most notably the ability to claim the £1.50 PCN funding that will otherwise be backdated to April 1st.

The new GP contract published at the end of January indicated the money for a network could be paid to a lead practice, a federation, an NHS trust or even a social enterprise.  All mention of that is gone in this guidance, which instead states that the recipient of the funding “must hold a primary medical contract” (i.e. a GMS, PMS or APMS contract), thus at a stroke discounting the majority of federations, NHS trusts or social enterprises.

How, then, federations might feature immediately becomes a less straightforward question.  The answer appears to lie in the recently published BMA Primary Care Network Handbook, which suggests one of the potential operating models for networks is to subcontract the provision of services and employment of staff to a federation.  Subcontracting in this way is allowed by this guidance, as long as it has the consent of the commissioner.  There is some complicated VAT guidance also provided, but my take is that as long as the twin traps of simply providing employment of staff (so falling foul of agency requirements) and of separating out clinical and non-clinical services into separate contracts, are both avoided then subcontracting by the networks to the federation is unlikely to incur VAT.

One of the other questions that has been doing the rounds is whether there is financial benefit in networks being smaller to secure proportionally more resources.  I think this guidance effectively puts that to bed by clarifying that even though each network (regardless of size) will initially receive 100% funding for a link worker and 70% funding for a clinical pharmacist, from April 2020 each network will receive a “single combined maximum sum… based on weighted capitation”.  So any advantage gained in 19/20 will be immediately lost the following year by having less left to spend on new roles the following year.  Indeed, the guidance states, “PCNs will not wish to make short term gains to the detriment of longer term sustainability”.

However, in 2019/20 practices can only use the workforce funding to appoint a link worker and a pharmacist, and cannot use the funding for any other roles.  The only flexibility is if a network either cannot recruit to one other of these posts, or already has a “full complement” of one or the other, at which point networks can substitute between the two roles.  The workforce funding for PCNs also means the clinical pharmacist scheme in general practice is being ended.  This means if practices have applied to the scheme, or even been approved for it but have not appointed a pharmacist, they will not now be eligible to go ahead.

The guidance also introduces the concept of “additionality”.  Essentially a baseline of staff numbers supporting practices across the five roles (clinical pharmacist, link worker, physician associate, extended scope physiotherapist, and paramedic) as of 31st March this year will be taken through a combination of NWRS (national workforce reporting system) and a (mandatory for practices) survey by commissioners during April 2019.  The funding for additional staff will be given as long as networks can show that these staff are “additional” to this baseline number.

There is much in the guidance about the supervision and workload requirements of the new staff.  My worry is the level of restriction in the guidance, coupled with the cost pressure and associated liabilities each new member of staff funded at 70% (or less) of total cost presents, may lead to a much lower uptake in the recruitment of the new staff than those writing the guidance are seemingly predicting.

Overall, as is the tendency of all detailed guidance, whilst it may provide some much needed clarity, enthusiasm for the changes will inevitably be dented by the sheer weight of the new instructions.  While some aspects are helpful, some are clearly not e.g. the change to the hosting arrangement options, and the lack of flexibility around workforce funding.

At the heart of the new GP contract was a desire to create a sustainable future for general practice, and yet what seems to be most lacking in this guidance is any focus on how all of this will benefit core general practice.  The challenge for local leaders will be first to understand this guidance, but then, more importantly, to translate it in a way that can still inspire local GPs and practices to make the most of this new opportunity.

How can Federations help Primary Care Networks?

Amongst all the furore that primary care networks are creating it is easy to lose sight of GP federations. The role of federations in the new world of primary care networks is unclear and not prescribed. So do they really have a future? If they do, what will it be? This week, I explore how federations could help the nascent primary care networks meet four of the biggest challenges they face.

Challenge 1: Managing the new clinical staff and the associated liability

By 2024 a typical (50,000 population) primary care network will have 5 clinical pharmacists, 3 social prescribers, 3 first contact physiotherapists, 2 physician associates and 1 community paramedic. That is a lot of staff. Who is going to manage the employment risk (and associated liability) for these staff? Some will arrive with considerable amounts of NHS service, making the potential employment liability very high.

Federations established as limited liability vehicles can not only take this risk away from GP partners, but can also add real value to the recruitment, management and development of these staff. When multiple networks are seeking to recruit from this limited pool of new staff, why will they select one area over another? If a federation can offer peer support, professional development, and (probably most importantly) structured support for both practices and staff in the implementation of these new roles, they will make their area more attractive to these staff, as well as ensuring the networks gain the greatest possible benefit from them. It is hard to overemphasise the importance of change management support to go alongside the recruitment of these new roles.

Challenge 2: Maximising the available financial resources and minimising the financial risk to practices

The new GP contract suggests that a typical network will have funding for additional role reimbursement of £726,000 by 2023/24. At 70% this creates a potential cost pressure for networks of up to £311,000. As a side note it has been suggested (e.g. in the BMA primary care handbook) that the £1.50 management allowance could be used to offset this, but the total management allowance for a 50,000 network is £75,000 – well short of the total amount potentially required.

It is on the finance side and meeting the “30% challenge” that federations can really come into their own. Federations can:

• Limit liabilities through an incorporated structure
• Attract further investment. Many CCGs and local integrated systems will want to invest in general practice, but will want to do it at a scale that maps to boroughs or historic commissioning areas, and federations providing an infrastructure across multiple networks will be an attractive vehicle for them to do so.
• Make the £1.50 management allowance go further. A typical network can’t hope to include delivery support, administrative support, communications and engagement, HR, financial support and leadership support with £75,000. But multiple networks working together could easily do this.
• Create other economies of scale. The £6 per head for extended access is a great example of a resource that if used collectively across a wider area through a federation could generate a significant return to constituent networks.
• Establish strong financial governance. A small but effective finance team within a federation can ensure financial risks are minimised, financial efficiencies are delivered (e.g. in relation to what funding is superannuable), and income opportunities are maximised.

Challenge 3: Ensuring delivery both across practices and with other organisations

Networks are not simply constructs that need to be created. There is a delivery expectation upon them, both across constituent practices and with local organisations. Five new network specifications kick in in April 2020, probably alongside the requirement to sort out extended access, plus any local enhanced serviced the CCG may want to add in to the mix. How will one network operating on its own get its head around all of the new delivery requirements? The nature of the new specifications mean it will not be as simple as passing them on to the member practices and simply asking each to do its share. New delivery models will need to be developed, agreed with practices and local organisations, and implemented.

It may be on the delivery requirements of networks that federations can add the most value. Resources can be dedicated to each of the network specifications, for example a clinical lead and a lead manager for each, who can negotiate with local practices, organisations and commissioners to create locally-tailored delivery models. Sharing resource and expertise in this way through a federation can reduce duplication and enhance local delivery.

Challenge 4: Meeting the leadership challenge of networks and creating a powerful local voice

Much is expected of the new “accountable” network Clinical Directors. They are to become the voice of the network in the plethora of integrated care meetings locally, as well as leading the development and delivery of new services, and sorting out any inter-practice issues – all in roughly one day a week. Nationally we have heard of a desire for new leaders to emerge from practices to take on these roles. These could be very challenging and isolating roles for potentially inexperienced leaders.

Networks operating together within a federation can do a number of things. They can provide leadership development. They can ensure the leaders work together to support each other, and share ideas, approaches and learning. The incessant representation requirements from the wider system can be prioritised and shared across the group. Equally, a strong collective voice for primary care and the area can be established through a federation (whereas multiple network voices, potentially contradicting each other, is likely to weaken the overall general practice system voice).
Primary care networks are not in competition with each other, and working together through a federation can help meet some of the major challenges they will inevitably face. It does of course rely on trust, and a belief that the federation will operate to serve and support the new networks. It may be that governance changes, such as ensuring there are at least a majority of network clinical leads on the federation board, are needed to establish the future role of the federation in support of networks. But however it is done, it does seem there could be a very important role for federations in support of general practice as we move into the new world of primary care networks.

The new BMA Primary Care Network Handbook

More information was recently published by the BMA on primary care networks.  You can read it here.  I would regard it as essential reading for all GPs and practices who are considering joining a network.   But at 30 pages it takes some working through, so for the time poor I have summarised below what it says about the questions not answered in the initial contract document.  The answers provided are essentially quotes from this new BMA handbook.

Can CCGs influence the shape of the new Primary Care Networks?

The only involvement of the CCG in this process should be when there are gaps in the total PCN coverage of their area. (the document’s highlighting, not mine)

The content of the network agreement is not within the remit of the CCG to challenge. As long as the practices have agreed, the CCG cannot refuse the DES based on its content.

What agreement is required between practices in a network by 15th May?

To be recognised as a PCN, individual GP practices will need to make a brief joint submission outlining the initial network agreement signed by all member practices.  This will specify how the member practices will handle network-specific issues such as:

  • decision making, governance and collaboration arrangements
  • arrangements regarding the delivery of different packages of care
  • the agreement for distribution of funding between the practices
  • arrangements regarding the employment of the expanded workforce
  • internal governance arrangements (appointment processes, decision making process, etc).

Who can be clinical director of a primary care network? Does it have to be a GP?

It is expected that the clinical director will be selected from the GPs of the practices within the network, but any appropriate clinically qualified individual may be appointed.

While there is no requirement for the clinical director to be appointed from within the network, we recommend that the first option should be to consider an appointment from within.

How will Primary Care Networks make decisions?

Each network is to have a governing/representative body.  This network “board” should operate as the network’s governing body, bringing all members together, overseeing joint decision making, the strategic direction of the network and the network’s funding/financial layout. It is also the body to which the clinical director would be directly accountable.

The network will need to decide:

  • what is within the remit of the clinical director to act executively, what needs to go back to the practice representatives
  • how the governing body makes decisions – does it require a simple majority, a conditional majority, unanimity, etc
  • how often the governing body should meet
  • how meetings are chaired (an elected chair, rotational chair, etc). As the clinical director will be accountable to the governing body, it may be better for the role to be excluded from chairing the governing body

What will the operating model of Primary Care Networks be?

Key issues to consider when establishing an operating model include employment liabilities, ability to offer NHS pension, and inadvertently attracting VAT charges.

5 potential operating models for networks:

  1. “Flat practice network” – practices work together and spread responsibilities and commitments, with one practice acting effectively as the network bank account.
  2. “Lead Provider” – a lead practice takes responsibility for engaging the workforce and entering into contracts
  3. “GP Federation/Provider Entity” – the provider entity is subcontracted to deliver services required by the DES and to employ the staff
  4. “Super-practice as a network” – a super-practice creates an internal ‘network’ amongst its constituent sites, with each ‘neighbourhood’ of practices operating as a mini network in themselves.  The super-practice would be the nominated payee and would then supply support and resources to its constituent neighbourhoods.
  5. “Non-GP provider employer models” – the non-GP provider is signed up to the network agreement, along with the GP practices. They provide network services and employ staff available under the DES on behalf of the network, as well as using their own staff to further enhance the network’s potential workforce.

All primary care networks will need management and administrative support structures.  Practices that form the network will also need to seek advice on any proposed legal agreements and financial matters, and will need to establish a regular meeting of their representatives to ensure that things are developing as planned.

What will Primary Care Networks actually do?

Networks will develop expanded practice-based and connected teams to deliver the provision of workload support of the member practices by:

  • working alongside the existing practice team and taking responsibility for some services of the member practices (to be decided by the network), focusing on extended-hours delivery in the first instance
  • restructuring some service delivery (to be decided by the network)
  • offering access to the extended PCN team (extending the workforce).

The funding currently associated with the Extended Hours DES will transfer (with the associated responsibilities) to the network. This will be provided as an entitlement to the network’s nominated bank account of £1.45 per patient. The network will decide how this funding is distributed in line with the provision of services required to fulfil the requirements of Extended Hours.

The £6 per patient that is currently provided for the Extended Access scheme will also transfer to the networks; the exact timing of this transfer will depend on the current arrangements in each area for the Extended Access scheme… The intention is to bring together extended hours and extended access activity to reduce fragmentation and confusion for practices and patients.

How will the funding for the new PCN workforce role work?  Will smaller networks receive (proportionally) more funding?

There will be funding for the clinical lead post for each network on a basis of 0.25 WTE per 50,000 patients, at national average GP salary (including on-costs) (of £137,516).

For the first year of the DES (2019/20), every network with a population of at least 30,000 can claim 70% funding as above for one additional WTE (whole time equivalent) clinical pharmacist and 100% funding for one additional WTE social prescribing link worker.

The level of funding available for a PCN will scale with its size. This will be especially true in future years when workforce funding switches from direct reimbursement to a capitated payment, based on the population size of the PCN.

Over the coming years…the workforce reimbursement system will be altered so that it is linked to the patient population of the PCN.

The network will need to provide a monthly invoice with evidence of costs to its CCG, and will be reimbursed the required amount up to the maximum reimbursement. The maximum reimbursable amount for each of these roles will be set at the weighted mid-point of the respective Agenda for Change salary band.

There are no mandated contractual terms for staff employed under the PCN DES.

Can the funding be used for additional staff practices have already employed?

Staff employed under the DES must be ‘additional’ to the existing workforce employed by the network’s member practices. This will be measured on a 2018/19 baseline established as of 31 March 2019…The only accepted exception will be those clinical pharmacists employed via either the national Clinical Pharmacist in General Practice scheme and Pharmacists in Care Homes scheme.

How are practices expected to fund the 30% staff costs (for roles where only 70% funding is provided)?

2 options:

  • Use the network payment (e. the £1.50 per head).
  • Practice-pooled funding (e. contribution from each practice)

Who will be responsible for distributing the network funding?

How funding could flow in a network – 4 examples:

  1. “Flat practice model” – expenses shared across member practices
  2. “Lead practice model” – a single practice takes sole responsibility
  3. “GP federation/provider entity” – the limited liability provider entity takes responsibility
  4. “Non-GP employer” – the non-GP healthcare provider takes responsibility

Can my CCG decide not to provide the required funding for networks?

Commissioners cannot remove or reduce the entitlements, but they can add to them.

Commissioners may choose to transfer, where appropriate, their locally commissioned services contracts to the network, rather than with individual providers.

Are Primary Care Networks just a precursor to general practice becoming part of Integrated Care Providers?

A more controversial model of integration, the ICP (Integrated Care Provider) has also been introduced by NHS England. ICPs involve merging multiple services into a single contract, held by a single provider. ICPs have been subject to controversy and the BMA has been clear that we oppose their introduction, as they increase the risk of privatisation and are incompatible with the independent contractor status of GPs.

How Much Governance is Enough for Primary Care Networks?

The relationship was over.  After a bright beginning things had slowly deteriorated, and now it was time to call it a day.  The problem was we had a house, a car, joint bank account, the works.  We were faced with a choice – get the lawyers in to fight it out, or sit down and work it out ourselves.

Would we have been better sorting out a legal contract at the beginning, so that in the event of this situation arising we would have had a framework to sort it out?

This is the question some practices facing the prospect of entering a Primary Care Network are asking themselves.  Two thirds of the promised new money for general practice is coming via these networks, and that may just be the start.  CCGs and STPs are likely to put nearly all future local enhanced services through these nascent networks.  The fates of each practice within a network will be intertwined.

With this in mind, the temptation is to establish some form of legal contract between the practices.  Yes there is going to be a model network contract, but is it going to be enough?  Networks are going to need every practice to pull their weight.  Would it be better to get them to sign up to both their commitments and, more importantly, the consequences if they don’t meet them?  Won’t that provide better protection for everyone?

Back to the end of the relationship.  We sat down and had the difficult conversation, and agreed who would be having what.  It felt like a better way to sort things out than paying expensive lawyers and asking them to decide.  We would have had to have the conversation anyway, but this way we had it face-to-face rather than through our legal representatives.  I don’t think an upfront legal agreement would have done anything other than breed mistrust from the very beginning and increase the likelihood of legal fees down the line.

If a practice in a network doesn’t pull its weight, doesn’t fulfil its commitments, or doesn’t do what it is supposed to do, all of the practices will lose out.  Stronger legal agreements won’t prevent the need to have the difficult conversation.  Better to focus on the work needed to avoid this situation in the first place.

Three things feel more important than investing in lawyers for practices at this stage:

  1. Build positive relationships. Develop enough trust between practices to be able to have the “difficult” conversation without getting the lawyers (or the CCG, or NHS England, or the LMC etc) in.  Time invested in relationships before these conversations are required will repay itself over and over if it means practices in a network can work through their own challenges and issues internally.
  2. Appoint the right GP network leader. Brokering these conversations is likely to fall to the appointed GP lead of the network.  Building bridges between the practices may well be the key challenge of these new leadership roles, and be much more difficult than the external facing requirements.  Appointing someone trusted by all of the practices will be key to future success.
  3. Get the size of the network right. Smaller may be better.  There has been an initial reluctance in certain quarters to move from pre-existing localities and groups of 70 or 100 or even 150 thousand populations into the new 30-50,000 limits.  There is a sense of safety in numbers in the larger groupings.  But the point of the new size is that it is small enough for everyone to know everyone.  At this size, building trust across everyone is more possible, and the leadership challenge less impossible.

One of the key strengths of general practice has been the family feel of the practices, and the close relationships between staff and with patients.  This is a strength practices should aim to build on as they move into networks, rather than abandoning personal relationships in favour of legal frameworks as a way of reducing risk.  Involving lawyers might feel like it is adding a layer of protection, but the reality is the success of the network will be based on the strength of the relationships, the quality of the leadership, and the ability to have the difficult conversations when they are needed.

What do Primary Care Networks Have to Do?

It is easy to get lost right now in the immediate challenge of identifying practices to be in a network with, persuading someone to be the ‘accountable clinical director’, and deciding who should hold the network bank account.  But to get these short term decisions right it is worth spending some time reflecting on exactly what primary care networks are supposed to do.

This starts with their place in the wider system.  The new GP contract says, “The Primary Care Network is the natural unit for integrating most NHS care. Collective general practice can become the footprint on which other NHS community-based services can then dock. And by serving a defined place, the Primary Care Network brings a clear geographical locus for improving health and wellbeing.” (p25)

How networks will start to enact this bold claim is also spelled out in the new contract.  There are seven services networks are to provide against national specifications.  After the set-up year of 2019/20, there are two initial services to be delivered in full in 2020/21.  Networks are to provide structured medication reviews to patients, focusing on particular priority groups.  The pharmacists employed during 2019/20 will be key to the delivery of this service.

They are also to provide a new enhanced service for care homes.  This might be the first new service requiring networks to agree differential delivery across practices, e.g. a lead practice for one or even all of the care homes.  A condition of signing up the network agreement is that services will be provided equally across the network population, and it is becoming immediately apparent networks won’t work via a simple equal division of labour across member practices.

Worth a further pause at this point.  Many CCGs up and down the country have commissioned these types of schemes locally.  It would seem the use of the national GP contract, and its new network function, will lead to the replacement of many locally commissioned schemes with nationally commissioned ones.  We should watch out for how much opportunity the imminent Network Contract DES indicates there will be for local flexibility.

There are three further services that are to “commence in 2020/21 and develop over the subsequent years”.  This is where general practice is taken into slightly less well chartered territory.  While the first service, anticipatory care, is fairly common across the country (although under different names such as “proactive care”) and the idea of identifying and proactively managing the needs of high risk patients is nothing new, what is new is that this service will require a “fully integrated primary and community health team”.   Community providers will even be asked from July to configure their community teams on primary care network footprints.  The relationship (and power dynamic) between the primary care network and the newly configured community team will be critical to future success.

Which takes us back to the wider purpose.  The network is very much about enabling the integration of primary care with other parts of the NHS system.  “A Primary Care Network cannot exist without its constituent practices, but its membership and purpose goes much wider. The NHS Long Term Plan sets out a clear ambition to deliver the ‘triple integration’ of primary and specialist care, physical and mental health services, and health with social care. The Primary Care Network is a foundation of all Integrated Care Systems; and every Integrated Care System will have a critical role in ensuring that PCNs work in an integrated way with other community staff such as community nurses, community geriatricians, dementia workers, and podiatrists/chiropodists.” (New GP contract, p30-31).

The next service is “personalised care”.  Easy to say, hard to understand exactly what it is.  I have read the relevant parts of the new contract a number of times and I still find it hard to pin down.  It seems this is essentially about widening the support provided to individuals beyond purely medical interventions.  Social prescribing and the newly funded link workers will play a prominent role in the delivery of this service.  However it plays out, it is another step in widening the scope and role of general practice through networks in influencing the overall health of local populations.

The last service to be introduced in 2020/21 is supporting early cancer diagnosis.  What is most interesting about this service will be the role of networks in raising awareness of symptoms and uptake of screening in their local neighbourhoods.  Networks may provide a way of practices operating more freely outside of their practices with local community partners.

Finally, in 2021/22 two more services will be introduced.  Cardiovascular disease prevention and diagnosis and, more nebulously, tackling inequalities.  Whilst the former is relatively clear, the latter much less so.  The text in the contract is along the lines of “we will test some ideas and then roll out the approaches that have the greatest impact at the network level”.

Alongside these seven new services from 2020 there will be a new national “Impact and Investment fund”.  Based on a principle of “shared savings” it means networks can gain a financial return from reductions in A&E attendances, emergency admissions, outpatient costs, prescribing savings, and hospital discharge (I assume via reduced length of stay), to then invest in new staff for the network.

It seems, then, the real work begins for networks in 2020 with the introduction of these specifications.  The immediate challenge then should not be simply to tick the relevant boxes that will be sent out by the centre, but rather to use 2019/20 to develop a platform that will be able to deliver against these future requirements, or even better one that can make a real difference to the health and wellbeing of the population it will be serving.

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