Shaping local markets

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Shaping local markets Claudia Wood, Resolution
Foundation
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Agenda

• The concept of market shaping in care
• What does it entail?
• Different perspectives challenges and
  opportunities
• Key questions and discussion

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The importance of market shaping

• Care markets are mixed in terms of funding and
  supply
• Care as a social good
• Balancing market forces with the protection of a
  social good is a difficult but vital task.
• As the number of self funders and personal budget
  holders increases, people are demanding more
  choice and control over the services they
  receive.
• There is a growing need for an agent to create
  the right conditions for a healthy, responsive
  market, offering people a variety of affordable
  and good quality services to choose from
  themselves.
•  
•  

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What does market shaping entail?
At the most basic level, market shapers ought to
ensure care users have   Sufficient volume
Enough services in their area to access care when
they need it Variety A mixed range of services
to choose from so they can access the type of
service that best meets their needs Adequate
quality Good quality services so that they can
choose services freely, without worrying if they
are sub-standard Affordability Affordable
services, so they have real choice and are not
priced out of the market  
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Different perspectives the local authority

• Local authorities have a significant influence
  over current care markets. Although their role is
  changing, the local nature of care services
  means local authorities will always have an
  important role to play.
• From a local authority perspective, the concept
  of market shaping may entail
• Less control over demand for and supply of care
• Acceptance of greater risk in giving more
  responsibility to both the care user and provider
• A potential increase in workload in considering
  the needs of all (not just state funded) older
  people
• A shift from commissioning, purchasing and
  contracting to using more indirect hands off
  methods
• The need to coordinate and share information
  across different local authority departments
• Challenges
• Organisational change
• Cultural change
• External forces

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Different perspectives care providers

• Care providers are directly affected by the way
  in which local markets are shaped their
  survival can depend on it
• From a providers perspective, the concept of
  market shaping may imply
• More responsibility to offer flexible care
  services, in place of direct management.
• The need for greater businesses skills to grasp
  opportunities to expand and diversify.
• The need for a more pro-active and client-focused
  approach
• Challenges
• Organisational change
• Cultural change
• External forces

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Different perspectives care users

• Although care users are not at the front end of
  market shaping strategies, the success of such
  strategies have an immediate impact on them.
  Furthermore, successful market shaping cannot be
  carried out without their input.
• For care users, their families and carers,
  therefore, market shaping represents an issue of
  rights and responsibilities.
• They have a right to expect their needs to be
  met, and to enjoy a good choice of services in
  their local area, which are of high quality and
  reasonable price. In return for this, they must
• Engage with care providers and local authorities
  by expressing their preferences and providing
  feedback on the services they use.
• Take advantage of the advice and information on
  offer, take responsibility to be well informed
  and be financially prepared for the contributions
  they may have to make.
• Become more pro-active in setting the outcomes
  they wish to achieve and planning their care in
  partnership with their care providers and/or
  local authority.

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Thanks

• Claudia Wood
• 0220 7731 9146
• Claudia.wood_at_resolutionfoundation.org

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Discussion

• Chair Jon Trigg, A4e
• Do care markets need to be shaped?
• Will local authorities be the key market shapers
  of the future? Should they be? Can they be?
• What can be done to encourage and support local
  authorities in this role?