Competency 9 - Securing the procurement skills to ensure robust and viable contracts
Sound procurement and contracting processes will ensure that agreements with providers are set out clearly and accurately, with both commissioner and provider having a clear understanding of what is expected. KM can support the establishment of these processes through the production of timely, detailed reports.
By putting in place excellent procurement and contracting processes, PCTs are able to specify quality standards and outcomes and facilitate good working relationships with their providers, offering protection to service users and ensuring value for money.
You can read more about this Competency, including the key information-related inputs and outputs required to meet this Competency here: Competency 9 - Knowledge Management Summary.
There is one area of this Competency where Knowledge Management has particular relevance.
- Understanding of provider economics
Below you will find a summary of how Knowledge Management can support your development in this area.
UNDERSTANDING OF PROVIDER ECONOMICS
The key pieces of information that are necessary for effective procurement are timely reports that inform the PCT about the providers performance against KPIs identified in the contract and deviations thereof. The timeliness of these reports will help the PCT and provider take remedial action in case of deviations from the established thresholds.
Dr Foster Interactive (DFI) provides an online tool called Provider Performance Management (PPM) that will allow the PCT to compare the performance of different providers.
At a minimum, the PCT will need to have a procurement strategy compliant with the Principles and Rules for Cooperation and Competition, and which takes account of provider market dynamics and patient experience data for each provider.
To reach Level 4, the PCT will be using its database to sort and extract a variety of metrics and benchmarks by provider and by disease group. It will also forecast service cost before receiving the provider’s own estimate, and be able to demonstrate that it has secured the best-placed for providers for all services.
For a list of resources relating to this area, including a summary of the documents and rating, click here.
