Torbay BC has agreed revised terms for a pioneering health and social care deal after the arrangement was found to put the council’s financial stability at risk.
A council-commissioned review of the deal by the Chartered Institute of Public Finance & Accountancy earlier this year found the Integrated Care Organisation (ICO) formed with South Devon Healthcare Foundation Trust and South Devon and Torbay Clinical Commissioning Group had a risk share that made the council “subject to the overall financial pressures from the NHS in the whole of the Torbay and South Devon area with no ability to control or influence them”.
The review also found that social care was not delivering the agreed savings and adding to the financial gap.
A council report published last week said a revised risk share that caps Torbay’s risk had been agreed but the CCG would need to receive approval from NHS England.
Under the new terms the council is to contribute a fixed amount of £3.1m a year up to 2019-20 in addition to the previously agreed amount, which eqautes to about £35m in 2017-18, with no exposure to further integrated care organisation budget variances.
The report states that this will partly be funded through £0.9m of the council’s £3.8m Better Care Fund allocation for 2017-18.
The remaining BCF balance will be allocated to care home fees (£0.9m), targeted investment in adult social care (£1m) and ICO reserves (£1m).