A new report outlines the cost of implementing personal health budgets. This is the third of five reports funded by the Department of Health explore the effectiveness of the different models examined.
This research looks at the set-up costs involved for the 20 in-depth evaluated pilot sites to implement personal health budgets. Costs examined include project management, system development, workforce development and support planning and brokerage.
The goal of personal health budgets is to give individuals more choice about the care and services they receive, by giving them more control over the money that is spent on their health care needs.
In summary, pilot sites reported:
After discounting costs that would have been incurred without personal health budgets and the resource associated with the pilot process (for example advertising the piloting of the personal health budget process) it was found that:
An overall average cost of £93,280 (median £81,680) within the first year would be required to implement the initiative. Following previous studies, it is assumed that as personal health budgets become more mainstream the level of resource required will be reduced.
The average cost of the project board was £52,760 (median £47,170) with an additional cost of £19,150 (median £9,220) for direct expenditure. The additional cost was associated with purchasing a brokerage service and setting up a direct payment service.
Taking account of the project management board activities, an average additional cost of £45,660 (median £33,570) was reported to be required during the first year among 13 pilot sites.
Among pilot sites focusing on implementing personal health budgets among two or fewer health conditions was £95,290 (median £80,690), while the average cost among sites concentrating on more health conditions was £91,640 (median £82,670).
London pilot sites reported that on average £111,570 (median £97,140) would be required during the first year, while sites within Metropolitan areas reported a lower overall average cost of £48,950 (median £44,440).
Pilot sites anticipated ongoing costs associated with staff time, advocacy and the review panel. One site thought that the implementation of personal health budgets would lead to cost reductions within the project management structure, due to collaborative working with the local authority. Potentially, over time the process would be more efficient as staff become more familiar with the process as the use of personal health budgets is expanded.
Twelve of the 18 pilot sites thought that the project management resource would be required for two years to ensure successful implementation. Based on this assumption and timescale, taking account of the level of resource that would be incurred without implementing personal health budgets, an average cost of £146,040 would be required to implement the initiative within a two year time period. As personal health budgets become more mainstream, it is assumed that the level of resource required will be reduced.
You can get a copy of the report HERE