ESM Federation

ESM Federation

A simple, cost-effective way of forming a GP federation

4 June 2014

ESM Partners, Oxford Centre For Innovation, New Road, Oxford OX1 1BY

T: 44 (0) 1865 261451 F: 44 (0) 1865 261401 W: ESMPartners.co.uk

Summary

ESM Federation is a simple, cost-effective way of working together whilst protecting practice independence

• ESM Federation protects practice independence by allowing members to opt-in to activities

• ESM Federation’s basic running costs are £290 + VAT per practice per year

• The processes involved in tendering and running collaborative projects make the most of the clinical and commercial expertise available to the federation, leading to high-quality bids and projects

• The federation will be in a position to bid for contracts by 1st October 2014 if ten or more practices join by the end of July (as an example date)

• Practices that are unsure about the benefits of federations but uncomfortable doing nothing can belong to the federation without risking anything more than the £290 fee

• Practices that are keen to make the most of the federation can enjoy a high return on their investment through winning profitable contracts and through effective project work



Background

The challenge is to develop a federation that delivers the benefits of working together whilst preserving practice independence

Independent

Practices

Merged

Practices

Shared decisions

Shared finances Independence

Shared resources

Where on the spectrum should your federation be?



ESM Federation

ESM Federation is a simple, cost-effective way of working together whilst protecting practice independence

Federation

Instructions

Information, Bids,

Projects

AdminCo

• Identify and communicate opportunities for contracts

• Run bids for contracts

• Identify and run projects

(eg. back office improvements)

• Be the legal entity through which bids are submitted

• Carry out administration for the federation

• Provide support / management for ongoing contracts

• The federation is not a separate legal entity – each practice is a member of the federation but remains independent

• AdminCo is a separate, private company that exists to do the federation’s bidding



ESM Federation

ESM Federation protects practice independence by allowing members to opt-in to activities

• Opt-in to bids and collaborative projects

• If you opt not to join in bids and/or collaborative projects you do not pay towards the costs of those activities

• Allows keen practices to move fast, allows less enthusiastic practices to wait for other opportunities

• Straightforward decision making on an activity by activity basis

• No obligations to the federation – you have complete freedom, including to work with other federations if you want



ESM Federation

ESM Federation is also cost-effective:

£290 + VAT per practice per year

• Basic fee of £290 + VAT for each practice per year pays for all admin support work

(minimum 10 practices)

• Includes 4 face-to-face meetings per year

• Transparent additional costs for bid work / collaborative improvements (eg. back office efficiencies, locum chambers etc.):

• £60ph for a project manager

• £25ph for an administrator

• Pay only for what you use

• Low costs mean better returns on investment

• Your money is your money - no money is retained by the federation



How It Works: Bidding

The bidding process makes the most of the clinical and commercial expertise available to the federation, leading to high-quality bids

ESM monitoring for contracts

Bid opportunity, practices wish to investigate

Members hear about contracts

Cost of bid established by

ESM, practices optin

Terms of bid agreed, including decision making processes and timings

Workshop held with members to devise and agree clinical pathway

ESM gathers information concerning all commercial elements of bid, paperwork completed

Delivery costs of service finalised and agreed with members, contingency and margin added to reach price of bid

ESM liaises with CCG, CSU and other relevant stakeholders during these stages



Paperwork completed

Bid submitted

How It Works: Projects

The project process follows a similar path and can be used to deliver projects such as back office improvements and locum chambers

ESM ideas for projects

Project opportunity, practices wish to investigate

Cost of project established by

ESM, practices optin

Terms of project agreed, including decision making processes and timings

Project delivered

Member ideas for projects



Team

The ESM team has extensive experience of submitting and winning bids, including NHS tenders

Jonathan Patrick qualified as a commercial lawyer at Freshfields before becoming a management consultant at A.T. Kearney. Since

2003 he has set up and run a number of successful businesses, including JPen Medical (the first on-site test and calibration company in primary healthcare) and eSupplies Medical. His first major contract for JPen Medical was won from (what was then) Oxford City PCT and he has wide experience of tendering projects. eSupplies Medical recently published the first independent analysis of CQC inspection data and had letters supporting GPs published in the Times, the Guardian and the Daily Telegraph. Jonathan was educated at Oxford University.

Greg Jackson started his career in brand management at Procter & Gamble where he managed a number of well-known products before founding C360, an IT company that pioneered the use of cloud computing across public and private sectors, including the NHS.

Greg then sat on the board of the PLC that bought his company, Tangent Communications, and has since joined the boards of highlyrespected online businesses Zopa and Rentify. Greg also sits on the board of eSupplies Medical and was educated at Cambridge

University.

Scott Welpton has spent the majority of his working life in a variety of financial roles, starting with a variety of leveraged finance roles that ultimately took him to UBS, where he has spent the majority of his working life. Scott specialised in project finance, assisting in the putting together of bids for a variety of corporations and then arranging appropriate financing. Scott is the Finance Director for eSupplies

Medical and was educated at Newcastle and Cambridge Universities.

NHS Bidding Experience

Jonathan Patrick has successfully negotiated clinical engineering contracts with various NHS organisations in the UK, including Oxford

City PCT, Norwich PCT, Ceredigion PCT, Barts and Royal London Hospital, Buxton Hospital and Cavendish Hospital (to name a few).

He has also tendered and won construction related contracts with various hospitals / foundation trusts including Chelsea &

Westminster, Queen Elizabeth Birmingham, Sandwell and District and more. Greg Jackson’s companies have worked for the NHS on smoking cessation campaigns in Brent (directly) and nationally (through an agency).



Activities Timetable

The federation will be in a position to bid for contracts by 1 st October 2014 if ten or more practices join by end of July (for example)

October November August September

Regulatory / Financial Approval for AdminCo

• CQC Registration

• Data Protection Registration

• Appointment of accountants

• Confirmation of compliant IT (IGSoc)

• Insurances (PI, Public, Employers’)

ESM Federation is Fully Operational

• Bids

• Projects

Liaison with CCG and CSU

• Advance notice of intention to tender – what is likely to be tendered when

• Continually improving ways of working together

• Feeding back and helping to set local priorities

• Note: discussions with relevant bodies regarding regulatory / financial approval are already underway. Timing is realistic.



Contact

Please contact us if you would like to discuss how ESM Federation could work for your locality’s GP practices

Jonathan Patrick, Partner jonathan.patrick@ESMPartners.co.uk

Tel: 01865 261451



ESM Federation

ESM Federation

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