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Chamber and committees

Finance Committee

Meeting date: Tuesday, June 15, 2010


Contents


Patient Rights (Scotland) Bill: Financial Memorandum

The Convener

Item 3 is evidence from the Scottish Government’s bill team on the financial memorandum to the Patient Rights (Scotland) Bill. I welcome Lauren Murdoch, bill team leader; Margaret Duncan, policy lead for the treatment time guarantee; Fiona Montgomery, head of the patient support and participation division; and Alastair Pringle, head of patient focus and equalities. I invite our witnesses to make an opening statement.

Fiona Montgomery (Scottish Government Health Care Policy and Strategy Directorate)

The Patient Rights (Scotland) Bill establishes in primary legislation key provisions to put patients at the heart of the national health service in Scotland, including person-centred principles, support services and a treatment time guarantee. To support staff and to help them to understand the rights of patients better, the Scottish Government is funding training and education materials and awareness raising through induction and continuous professional development that is costed at £94,000 this year and £800,000 in each of the next two years. The patient advice and support service, which will be staffed by patient rights officers, will build on the work of the current independent advice and support service, which is provided for health boards through contracts that are negotiated locally with citizens advice bureaux.

To support patients in exercising their rights, to widen access and to ensure consistency of quality, the Scottish Government proposes to commission the service nationally and to provide funding for the patient advice and support service of £1.25 million a year on top of current board funding. That could provide a total of around 65 to 80 full-time equivalent patient rights officers throughout Scotland. Patient rights officers will support people who want to make a complaint, raise concerns or provide feedback on the health care that they have received. The right to do that is established in the bill.

The consultation on the bill and the equality impact assessment highlighted the fact that communication support and advocacy are key to ensuring that more vulnerable people are able to exercise their patient rights. Advocacy services should be available where they are needed, but more work is required to establish what is available and what is needed. That is why, this year, the Scottish Government is providing funding of £500,000 to help boards to undertake an assessment of need and to draw up advocacy plans. From 2011, the Government will provide boards with an additional £500,000 a year to provide additional advocacy services. Translation, interpreting and communication support is funded by boards from their general allocation. To support NHS Scotland’s action plan to improve support and ensure greater uniformity of approach and provision throughout Scotland, the Scottish Government is providing £250,000 per annum for three years.

The bill introduces a treatment time guarantee for eligible patients to start treatment within 12 weeks of their treatment being agreed. That guarantee is part of wider work on driving down waiting times, for which substantial funding has already been provided. Delivery of the 12-week treatment time guarantee is an integral part of the 18-week referral-to-treatment time target.

The money that has been allocated to the bill shows a commitment to supporting patients in the exercising of their rights.

The Convener

Thank you. I invite questions from members.

Malcolm Chisholm

I think that people would definitely support the objectives of the bill. However, having read the evidence from health boards, you will be aware that they are concerned that the costs may be greater than has been stated. Obviously, the context of that is more difficult budgets than the boards have known for a few years.

Three areas of concern have been highlighted, one of which is the training. Boards are saying that the full costs of that training have not been taken into account, as they must in-fill if people go on training courses. You mentioned advocacy and said that the funding would go to services. There seems to have been some ambiguity about whether it would go to the national organisation or to services, and boards are anxious that they may need to provide more services than the £500,000 would fund.

The third area, which is the most interesting, is the waiting time target—the flagship policy in the bill when it was first drafted. The target has now been modified and people will ask what difference the bill will make, but that is a policy question rather than a financial question. The financial question is whether recurring costs will be involved in achieving the waiting time targets. I am aware that some money has been provided this year. I would like to hear some response to the boards’ concerns on that. Is the money that has been provided for waiting times this year recurring, and will it be sufficient to maintain the waiting time right in the bill?

Fiona Montgomery

On training, we have been speaking to representatives of NHS Education for Scotland, which delivers all the education materials and so on for the NHS. We are getting involved in pre-registration training, induction training and other training, rather than taking some people out every day to do a whole day away from their normal duties.

Alastair Pringle (Scottish Government Health Care Policy and Strategy Directorate)

Given the 150,000 staff in the NHS, it would cost a lot more to offer any coherent programme of work around person-centred care than is set out in the bill. NHS Education for Scotland provides an opportunity to develop a national set of principles and training, with a consistent quality of materials and provision throughout the NHS, including in remote and rural areas.

The focus needs to be on the development of a range of materials, on e-learning and on building the principles of person-centred care into the knowledge skills framework, for instance. Working across continuous professional development and existing packages offers by far the most effective mechanism.

There is also an opportunity, through working with NHS Education for Scotland, to deliver some of the training to front-line staff. There has perhaps been a slight misunderstanding over what the money will be used for—it is not just to go to a national board; it is intended to build patient rights training and person-centred care training into existing packages.

Fiona Montgomery

Your second point was on advocacy. We are spending some money this year to find out what is actually happening on the ground and to ascertain whether there are any gaps. The money will then go towards addressing those gaps, which might not be the same across all boards.

As far as waiting times are concerned, the bill’s treatment time guarantee provisions are what we are discussing, and that guarantee is inextricably linked to the 18-week referral-to-treatment time target. Money that is going towards meeting that 18-week target, as well as the waiting times, will be covered through recurring funding.

Margaret Duncan (Scottish Government Health Delivery Directorate)

This year’s funding is £70 million, and that is recurring funding—that will go forward next year.

Malcolm Chisholm

I suppose that that covers most of the matter. NHS Ayrshire and Arran has had to put in some non-recurring funding, but I do not know how typical that is of other health boards. NHS Ayrshire and Arran, at any rate, says that it will face an additional cost each year. What is your comment on that?

Margaret Duncan

There are problems at individual boards, which might need to put in some extra capacity. However, we will continue to deal with that through the support and delivery of the 18-week referral-to-treatment time. The issues around the financing of that and the treatment time guarantee will continue to be discussed in order to ensure delivery.

Malcolm Chisholm

So the requirements could be a bit more and, if so, you will just have to cover that, as the target is so important.

Margaret Duncan

Yes, although the £70 million has not yet been allocated. We are in discussions with boards on the appropriate allocations.

Malcolm Chisholm

As you have clarified, there has been some ambiguity about how many patient rights officers would be required. There was a discrepancy between the policy memorandum and the financial memorandum in that regard. You quoted the figure of 65 to 80 officers; I think that that is from the financial memorandum. I suppose that the boards are concerned about that, too—perhaps it is the biggest area of concern, in some ways.

The question is how you arrived at that figure, and whether there is any flexibility for the boards given that some of them are saying that that is not necessarily the right number. I am just reflecting the anxiety of boards, which will face tough budgetary decisions—they are already having to make them. To what extent is that figure for the number of officers an indicative one? Is there some flexibility with it?

15:00

Fiona Montgomery

Although the service will be different from the current independent advice and support service, we arrived at the figure by looking at current case worker costs and basing our look forward on that. With procurement people in NHS National Services Scotland, we are looking at the specification of a national contract for the future. That is partly because there have been inconsistencies in the quality and amount of service across boards. We are trying to make that more consistent. We have looked at the numbers and, as the contract is worked through and we discuss local needs with boards, we are trying not to be too specific by saying that we need X number of patient rights officers in every board. We are allowing for a bit of leeway, which includes how much the organisation that will get the contract wants to spend on marketing, central support and so on. That is why we have tried to cover a range of figures.

Tom McCabe

A number of organisations have expressed concerns about the financial memorandum. For example, Citizens Advice Scotland has indicated that it cannot see any provision for inflation or salary uplifts over a three-year period. Clearly, if that was the case, that would be a pretty substantial real-terms decrease in the money available over three years. Secondly, CAS said that there does not appear to be any marketing budget for the new organisation. Given the nature of the work that the organisation will do, one would think that marketing would be pretty important in bringing the service to the public’s attention and making people aware that this is a route that they can take.

Lastly, you touched on the national contracts. What will the relationship be between the new organisation and each individual board? Will service-level agreements be set to accommodate local circumstances, or will a national approach be taken through the contract?

Fiona Montgomery

On inflation and salaries, we have produced a package with an amount that we think will take us forward. Obviously, though, we are still in discussion about the exact specifications of the contract; costs may be slightly less in the first year, which would allow a bit for an increase for inflation in future years. However, we are still working our way through that.

On marketing, other things are going on. For example, we will look at patient-facing information for people who might not go through a patient rights officer but who still want information. In addition, NHS inform will come on stream with a national strategy to inform people of everything about their health care, including rights, patient advice and support. Again, we are going through the contract specification with the boards, and the procurement people have been speaking to Citizens Advice Scotland about what it does, so we will build in something for how we market the service locally and nationally.

On the national contract, it has been quite clear that individual boards’ relationships with their local CABx are an important part of taking that forward. We want a national contract to ensure that there is equality of service, but we will still have some sort of local arrangement so that relationships between complaints officers, patient rights officers and so on can be built up.

The Convener

How can you ensure value for money and how would you measure it?

Fiona Montgomery

It is very difficult to measure value for money in this area. There is quite a lot of evidence about improving a patient’s experience and about information that has an impact on a patient’s health care and health outcomes. We tried to quantify the amount in our work on the regulatory impact assessment. We can do qualitative work and talk about a case study in which we can see that, if somebody is better informed about their health care, they may be better at, for example, taking their medication and attending consultations.

If people get a better health outcome, they might not come in and out of the service so much. However, that is difficult to quantify. We did not put too much about savings in the financial memorandum because we could not justify that with the evidence, but we definitely think that savings will be achieved.

David Whitton

I am pleased to hear that you think that savings might be made, but most major health boards that have given evidence expect not savings but increased costs. What consultation have you had with boards about the bill’s financial implications and particularly about the concerns in their submissions?

Fiona Montgomery

We have consulted boards all the way through the bill process. The bill was introduced in March, but consultation took place for some time before then. We have talked to national boards such as NHS Education for Scotland about contracts to do pieces of work—that board has given us its estimate for the work. We have spoken to the territorial boards—the local boards—throughout the process and we continue to speak to them and a range of stakeholders.

Lauren Murdoch (Scottish Government Health Care Policy and Strategy Directorate)

We have spoken to several chief executives at their regular meetings with the Government. We have also met patient focus and public involvement representatives as part of general work on patient support and participation.

David Whitton

I will quote just the submission from NHS Lothian, for example. It was asked the standard question:

“If the Bill has any financial implications for your organisation, do you believe that these have been accurately reflected in the Financial Memorandum? If not, please provide details.”

The board’s answer was “No.” It gave details of why the memorandum did not reflect the costs.

The other point that is made is that, at a time when boards such as NHS Greater Glasgow and Clyde and NHS Lothian have announced staff cuts—including cuts in nurses—you ask them to recruit patient relationship officers. I understand that boards must strike a balance between what is in the bill and what they are asked to do with their finances, but how much has that been taken into account?

Fiona Montgomery

On patient rights officers and the patient advice and support service, we ask boards only to continue to provide their current funding level for the independent advice and support service. We will fund centrally the additional costs.

David Whitton

So somebody might just change their job title. Do most health boards not have somebody who deals with complaints?

Fiona Montgomery

Patient rights officers are independent and do not work for boards. Case workers who currently provide such a service are employed by citizens advice bureaux. Under the new system, the contract will be open—we do not know who the supplier will be. In response to the consultation, patients and stakeholders said clearly that they wanted an independent advice service and that they wanted to approach somebody who was not employed by the health service. No matter how good and helpful a complaints officer might be, some people wanted independence at some point.

The contract for the service will not be funded at the expense of nurses. The Scottish Government is keen to emphasise that helping people through their health care journey—especially those people who need a bit more help; not everyone needs a bit of help, but some do—produces a better outcome. The service will assist people to access front-line services.

David Whitton

Are you confident that enough is being allocated to help with the staff training that Mr Pringle mentioned and that boards will not have to carry an extra burden in the end?

Fiona Montgomery

We are packaging that training with a range of other training on the NHS quality strategy that was launched recently, on equalities and on human rights. NHS Education for Scotland has told us that it can deliver the package of materials, which we can embed in staff training.

Alastair Pringle

The costs were based on the previous experience of NHS Education for Scotland in delivering similar NHS-wide programmes of work, such as the patient safety programme. We are fairly confident that the costings are accurate. We would not necessarily expect any additional cost to health boards if we are building the training into the existing programmes and delivering it through existing training and practice managers networks and the like. We are quite confident that the networks and infrastructure are in place to deliver the training.

David Whitton

I want to pin down exactly how many patient rights officers there will be. Is it 40 to 50, or 60 to 80?

Fiona Montgomery

The 40 to 50 would be the additional ones, with the additional central funding. There are already 30 or so independent advice and support service workers. The 40 to 50 are the additional workers that we could provide with the £1.25 million from central funding.

David Whitton

On central funding, NHS Lothian said:

“Translations of leaflets should be produced and paid for nationally”

rather than locally. Have you any sympathy with that view?

Fiona Montgomery

Perhaps Alastair Pringle could say something about NHS inform.

Alastair Pringle

I thought that the point was valid. We are doing some work on national quality assurance and the accessibility of information through NHS inform, which is the new national patient information service. Over the next year, a bit of work will be done with health boards to look at how we co-ordinate and ensure better efficiency and effectiveness in the translation of materials centrally. That work is under way.

Jeremy Purvis

I see that there will be quite a bit of money for the bill in 2011-12 and 2012-13. How do you know that you will have that money?

Fiona Montgomery

We put this forward at the end of March. We recognised that within the health care strategy and policy directorate we would be able to find the money by reprioritising work because certain things will be coming to an end and so on. Obviously the budget situation gets tighter as we look forward. We still think that we will be able to deliver, but we will have to consider it if things change in the overall budget for health. I would not like to say that the amount of money involved is modest, but it is quite small in the scheme of the health budget. Assisting patients to access front-line services is seen as a priority area.

Jeremy Purvis

So, whatever happens in the spending review period, this spending is set. You have been told by ministers that it is an absolute priority to have 40 to 50 additional PROs, rather than nurses, for example.

Fiona Montgomery

We do not know what the spending review will provide, but the best that we can say at the moment is that these figures are what we are working to. As with all things, as we work our way through, we will look to see whether we can get the same outcomes for slightly less or get better value for money elsewhere.

Jeremy Purvis

Previously, when the committee scrutinised the health boards elections pilot, the Health Boards (Membership and Elections) (Scotland) Bill team told us that they could not give us any indication of expenditure post-2011, because that is in the spending review period and it is out of their hands. Here, the expenditure seems to be quite set. I do not know which is—

Fiona Montgomery

The figures are the current projections. On the financial memorandum, we are usually asked to look three years ahead. This was the best that we could do with the information available to us.

Jeremy Purvis

I turn to some of the bill’s other impacts. One of the big elements is the impact on Citizens Advice Scotland, given the services that it currently provides. Forgive me, because this might be in the papers, but I could not see it: has a regulatory impact assessment been carried out and, if so, what was its conclusion with regard to the impact on an existing body operating under contract?

Fiona Montgomery

A regulatory impact assessment has been carried out. I cannot give the exact figure for that, but we can certainly pass on any information that we have.

The Convener

Perhaps the information can be submitted in writing to us afterwards.

Fiona Montgomery

Certainly.

Jeremy Purvis

Does the financial memorandum or policy memorandum mention that a regulatory impact assessment has been carried out?

Fiona Montgomery

Possibly not, but a regulatory impact assessment has been carried out.

Jeremy Purvis

Why is that not mentioned?

Fiona Montgomery

I am not sure.

Lauren Murdoch

The financial memorandum makes a brief mention of the regulatory impact assessment.

15:15

Jeremy Purvis

What did the regulatory impact assessment conclude about the proposal to remove the contract from the organisations that currently deliver those services?

Lauren Murdoch

The regulatory impact assessment primarily looked at the impact on patients. It did not look at the impact on the contracts with citizens advice bureaux, which are due to come to an end anyway.

Fiona Montgomery

NHS National Services Scotland is looking into the contract, including whether arrangements under the transfer of undertakings and protection of employment regulations will be required. As Lauren Murdoch has referred to, some of the contracts started in 2006 and some of them started in 2008 but we have extended them all to the end of March 2011. That is the specific timescale.

Jeremy Purvis

I see that paragraph 64 in the financial memorandum states:

“NES will undertake this work including the recruitment of staff where necessary”.

However, in the NHS workforce projections that the cabinet secretary published recently, NHS Education for Scotland forecasts a net reduction of six in the number of its staff. Why is there not consistency between the workforce planning exercise and the financial memorandum, which suggests that the extra work will be incorporated within NHS Education for Scotland? I cannot see how those projections match.

Fiona Montgomery

I would need to go back to look at the NES workforce plan, which I am not familiar with. We can certainly provide that information later.

The Convener

Yes, those are very detailed questions. It would be helpful if the committee could be given that evidence in writing.

Jeremy Purvis

Thank you, convener. In essence, the point is that every health board is projecting reductions in staff numbers, including in the number of clinical staff posts, whereas the bill will require that further investment is made in additional PROs. Indeed, NHS Greater Glasgow and Clyde—I refer to paragraph 4 of its written submission—suggests that the £831,000 for patient advice and support services is an underestimate. The submission states that, of the £831,000 recurring cost,

“NHSGGC might actually incur as much as £249,000. This would be substantially higher than the current IASS contract.”

What is your view on that?

Fiona Montgomery

The £831,000 is what all the boards told us they are paying for their contracts in the current year. If NHS Greater Glasgow and Clyde is paying slightly less than what might be expected from its population average, perhaps that shows why we are moving to a national contract, which should provide a bit more consistency of service.

Jeremy Purvis

NHS Greater Glasgow and Clyde’s concern is that, because of the size of the health board area,

“NHSGCC ... tends to incur 20-30% of the costs of any national initiative.”

Therefore, it estimates that its actual share of those costs will be £249,000. Are you saying that no health board will be asked to contribute any additional expenditure as a result of the bill?

Fiona Montgomery

For the patient rights officers, the additional money from the centre will be spread out across the boards, based partly on how the national resource allocation committee allocates funding but more on how the contract works and on the local needs of the different boards. The funding may just continue at the current level.

The Convener

We have reached the end of our questions. As you have no final comments to make, I thank you for your attendance and for the evidence that you have given us, which will be helpful to the committee.