The council faces several challenges in responding to the scale of forecast demand.
Systemic pressures and demands
The COVID-19 pandemic placed enormous pressures on an already stretched health and social care system, and care homes have undoubtedly been hit hard. However, the pandemic also highlighted care homes’ key role in helping the wider system, including our acute and community hospitals, to function throughout the crisis.
We therefore need to develop our ability to respond quickly and proactively to systemic pressures and demands, with better market intelligence, over-sight and more efficient brokerage processes, including e-brokerage.
Developing alternatives to permanent care home placements
Key to achieving our aim of helping older people to remain at home for longer, is the need to develop realistic, robust and appealing options for housing with care in later life. This includes the provision of flexible and holistic options to support people at home, as well as alternative housing options such as Extra Care Housing.
Substantial, coordinated efforts and investment will be needed to shape and deliver the range of later life housing options that will be needed to enable people to stay at home for longer.
Using Reablement as a first choice of care and support will be another key factor in keeping people in their own homes for longer so reducing the need for care home placements.
Focus of the Dorset care homes market
Dorset has a large and growing population of older people, 83.6% of whom own their own home. The Dorset care homes market is predominantly geared towards more affluent, asset-rich individuals who fund their own care. Collectively, it is private or self-funders who have the market power in Dorset. Our current reliance on one-off ‘spot’ purchasing further dilutes our ability to negotiate good long-term access to residential care at reasonable rates.
However, people who pay for their own care and support often lack the comprehensive information required to make an informed choice about how their care needs will be met. Self-funders’ purchasing decisions have a major impact on Dorset Council’s ability to access suitable, affordable, quality care for the people whose care it funds.
Care homes that predominantly target people who pay for their own care are less likely to cater for the type and level of care need that the council brings to the market, to have the capabilities needed to do so or to be able to offer an affordable price.
Additionally, people who choose to go into permanent residential care may do so at a far earlier stage than would be typical for someone whose care is funded by a local authority. In 2023/24 the council spent £2.8m on the care fees of 80 individuals who had run out of their own funds. The number of individuals had increased from 64 in 2020/21.
Gaps in service provision
Despite needing to source, on a daily basis, care home placements for older people with dementia and complex care or nursing needs, the council struggles to do so, leading to delays in sourcing appropriate care for individuals including those ready to leave hospital.
During 2024, working with social care and health professionals, including provider representatives, we have developed a Service Category Model approach to define the types and levels of care we need, including typical weekly care hours and aligning to Fair Cost of Care analysis and fees.
Dorset Care Framework and Service Development
Through our DCF2 procurement, we’re planning to apply the Service Category Model to all aspects of our care home service commissioning, including our major block contracts, bringing structure, definition and consistency to how we source residential care services for people who need them. We want to work with the market and our ICB Partners to develop both capacity and capabilities within the care home market to meet our service categories, particularly those covering middle and later stage dementia and more complex care and support needs, including behaviours that challenge, nursing care needs. We also anticipate a greater demand for short term services, as this will help older people to remain independent for longer.
We want to explore how we can incorporate the Service Category Model into our Information, Advice and Guidance so that it might be used to help self-funders navigate the care homes market.
We’re currently concluding the first competition to deliver care home services for older people under Lots 6 & 7 of the Dorset Care Support, Housing and Community Safety Framework (DCF2).
In preparation for this major tender, Commissioners worked with stakeholders to develop and put in place key elements to incentivise and support the procurement process, including:
- service Category Model – a detailed framework for purchasing care home services for older people, which defines the type and level of needs to be met, makes clear assumptions about the hours of care to be provided informed by the Fair Cost of Care analysis completed in 2022/23, and clearly differentiates the various service categories
- fee revisions and uplifts – additional funding received via the Market Sustainability Fund within the Adult Social Care budget allowed us to offer ‘DCF2 fee rates’ for Service Categories which in most cases equate to 95% of the relevant Fair Price of Care (FPOC). We also offered providers that are awarded a contract under this competition prioritisation for fee uplifts where available
- service Specification – we’ve developed a comprehensive Service Specification to reflect current and anticipated care and support needs and make it easier for internal and external stakeholders to work with this and related documents
We’ve analysed the gap between service supply and demand and have identified priorities for service and market development, including opportunities for care homes to develop their services to fill these supply gaps and better meet population needs.
We’re planning for future competitions under DCF2 that will give care homes the opportunity to bid to work with us at competitive fee rates and achieve greater business certainty if they are awarded contracts.
We’re planning to apply the Service Category Model to other aspects of our care home service commissioning, including our major block contracts, bringing structure, definition and consistency to how we source residential care services for people who need them.
Budget pressures
The financial climate facing the public sector is difficult and unlikely to improve in the foreseeable future. In all of our commissioning arrangements, value for money, quality and the sustainability of services, need to be taken into account and we will continue to follow Fair Cost of Care principles in how we plan and manage our costs.
Priorities:
- service development – we want homes to develop their services to better meet the needs of older people in Dorset, particular those living with middle and later stage dementia. We’re planning to work with NHS Dorset ICB and other stakeholders to explore what can be done to achieve this
- planning guidance and the Local Plan – we will work with colleagues to ensure that the Local Plan makes clear the requirements for residential services in the Dorset Council area and individual localities
- information, advice and guidance – we want to explore how the Service Category Model might be used to help self-funders navigate the care homes market