Aligned Incentive Contract with Western Sussex Hospitals NHS Foundation Trust

In October 2017, the CCG and Western Sussex Hospitals NHS Foundation Trust (WSHFT) signed the Aligned Incentive Contract (AIC).  The AIC replaces an activity based contract (Payment by Results), allowing us to jointly focus on reducing demand and making sure the system is working efficiently.

Under the AIC, instead of paying for each patient treated we have what we call an Expected Income Guarantee. This is a minimum sum that WSHFT can expect to receive against an agreed activity plan and the performance and quality requirements, which are set out in our contract. 

Unless there is a dramatic shift in activity which neither organisations had expected, and which we are unable to manage without additional investment to ensure patients remain safe, the CCG will pay no more that the agreed contract amount.

This is a real opportunity to change the way we work with WSHFT to innovate and look at new ways of working to deliver services in different ways and settings, which are better for patients. For example, we will pay a fixed sum for all elective care and diagnostic services. WSHFT will no longer be paid each time it treats a patient.

This means that there is a real incentive to look at how planned care services are provided in our hospitals and WSHFT has plans for One Stop Shops, which reduce the need for multiple attendance, virtual clinics which remove the need for costly follow up appointments, and working more closely with Primary Care clinicians to ensure patients get advice and guidance before a referral to hospital. 

Joint Delivery Board

All of these new ways of working and new ways of providing services will be monitored by a Joint Delivery Board which will be co-chaired by the CCG and WSHFT.  The draft Terms of Reference for the Joint Delivery Board are available below.

In addition to staying on track against our plans the Board will ensure that all of those working to deliver health services in Coastal West Sussex do so in a spirit of partnership and collaboration.

Aligned Incentive Contract Joint Delivery Board -  Draft Terms of Reference