Source · Select Committees · Public Accounts Committee
Recommendation 10
10
Acknowledged
Health Transformation Areas are testing radical changes in health assessment service delivery.
Recommendation
The Department plans to complete the Programme by 2029 with the launch of a new health assessment service. This will require the Department to develop both a new digital system and an operational service to process claims, which both need to be tested.15 In 2021, the Department introduced health transformation areas, which were intended to provide the Programme with the capability “to look at radical changes to the way” it delivers the service by processing up to 4% of new claims through these areas.16 Health Transformation Areas are the Department’s testing area for developing its new health assessment service, where DWP decision-makers and healthcare professionals are co- located and able to discuss cases with wider access to information about a claimant. The Department told us that “one of the elements [it is] testing quite heavily at the moment” in health transformation areas is how “is the way we use case management”.17
Government Response Summary
The government agrees with the recommendation, stating that FAS contracts contain levers to enable supplier involvement, including test and learn activity and expansion of the new Health Assessment Service (HAS), with suppliers incentivized through partnership and gainshare. It will develop a future health commercial strategy from 2024 to replace services in 2029.
Government Response
Acknowledged
HM Government
Acknowledged
The government agrees with the Committee’s recommendation. Recommendation implemented 4.2 The Functional Assessment Service (FAS) contracts contain specific contractual levers and mechanisms to enable the supplier involvement required to support transformation. This includes test and learn activity and the expansion of the new Health Assessment Service (HAS). Suppliers are incentivised strategically by being a partner in the development of future services, and through mechanisms such as gainshare where suppliers share the rewards that transformation drives. 4.3 Competitive advantage by incumbent suppliers can never be completely overcome, but the department will mitigate this through market transparency and robust procurement processes to encourage competition and increased participation. The department has demonstrated the ability to achieve this in the recently awarded FAS contracts, with two new suppliers. 4.4 The department’s future health commercial strategy will be developed from 2024, putting the department in a strong position to replace services in 2029 and commence transformed services. The strategy will follow Sourcing Playbook best practice, considering the department’s role and interaction with the Market, through application of a delivery model assessment. It will focus on understanding the role of suppliers in the transformed HAS, including whether any element would be best delivered directly by the department; development of the right marketplace for those services, transparency of information with that market as the department continues to develop HAS, the opportunity for market input to the development of services in readiness for procurement, and how best to procure future services. 4.5 The strategy will also explore new contracting mechanisms offered by new UK Procurement Regulations that the department expects to provide more flexibility for contracting authorities in such complex procurements.