Financial Risk Share. The Risk Share Agreement (RSA) (Appendix 9) was developed as part of the transaction creating the ICO, and took effect from its inception on 1st October 2015. A revised Risk Share Agreement was agreed October 2017. The share of financial risk going forward is a function of the wider performance of the Trust, rather than specifically in relation to Adult Social Care. The financial baseline from the Council and the CCG, the commissioning funders of the ICO, are set out in the revised Risk Share Agreement, known as RSA2.
Financial Risk Share. The Risk Share Agreement (RSA) (Annex 6) was developed as part of the transaction creating the ICO, and took effect from its inception on 1st October 2015. The Risk Share has been updated for further periods and the in-situ agreement covers the term 2020-23 which this Adult Care Strategic Agreement aligns with. The share of financial risk going forward is a function of the wider performance of the Trust rather than specifically in relation to Adult Social Care. The financial baseline from the Council and the CCG, the commissioning funders of the ICO, are set out in the revised Risk Share Agreement 2020_23 which includes the Better Care Fund and the Improved Better Care Fund. The RSA 2020_23 is monitored through the Adult Social Care Improvement Board which includes all parties to the RSA and the Adult Care Strategic Agreement.
Financial Risk Share. The Risk Share Agreement (RSA) developed as part of the transaction creating the ICO took effect from its inception on 1st October 2015. The share of financial risk going forward is a function of the wider performance of the Trust, rather than specifically in relation to Adult Social Care. The financial baseline from the Council and the CCG commissioners funding the ICO through the RSA is confirmed in the financial table contained within the 2016/17 variation to the RSA. The variation has been agreed by all parties and is contained in Annex 6a along with the original RSA as set out in Annex 6b. In addition to confirming the financial baselines the 2016/17 variation also set out specific changes or variations to the original RSA. Efficiency Risks: delivery of the wider cost improvement programme; agency and temporary staffing costs; increasing costs of medical technologies; rate of expenditure in both Adult Social Care and Placed People; delayed delivery of financial benefits associated with the implementation of the revised care model. Risks pertinent to Adult Social Care expenditure include: the scale of savings required; the Judicial Review challenging Care Home fees set by the Council; insufficient capacity in the domically care market; sufficiency in the care home market; community Support for Change; impact of case law relating to the Deprivation of Liberty Safeguards; pressures within the out of hours Emergency Duty Service; impact of the Care Act; the increasing complexity of needs. Please refer to Annex 7 Risk Matrix for further details.
Financial Risk Share. 7.1.1. South East London CCGs are collaborating to mitigate and effectively manage financial risks, working together and with other health partners and public sector organisations. Agreed risk sharing approaches have been used effectively and will be kept under continuous review each year to ensure that they incentivise good performance, avoid untoward incentives and can demonstrate best stewardship practice in the use of resources.
7.1.2. It is recognised that risk is best managed by those best able to address the specific risk. As such there is no single place that financial risk management will best be delivered. A range of risk management approaches are encompassed within our overall risk sharing framework including actions through: Individual CCG financial controls and governance through budgetary and other risk and contingency management frameworks; Risk sharing with local commissioning partners, including local government, such as through joint commissioning arrangements; Risk sharing with providers through contractual agreements to incentivise service change and QIPP delivery; Risk sharing and pooling across CCGs to reflect approaches to share risk in specific commissioned services and to support the delivery of shared programmes; and Mutual financial aid to support delivery of individual CCG financial targets in the short term, assist recovery and sustain on-going strategic direction without destabilising the health economy.
7.1.3. Full details are contained in appendix 4
