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Transformation Funding – FAQs

19th July 2016

Transformation Funding – FAQs

What is the Transformation Fund?

Our plans to improve the health outcomes of Greater Manchester have been backed by the announcement of £450m transformation funding from NHS England.

The aim of the Fund is to support solutions which deliver clinical and financial sustainability across GM and at locality level and improve the outcomes included in the Strategic Plan.

The £450m is to be split over the five year vision and will be used to fund projects or programmes that deliver transformation. The fund is not there to prop up organisational deficits. It can’t be to paper over the cracks of current service pressures.

Phasing of Funding is to be split over the next five years

  • Year 1: £60m of transformation funding
  • Year 2 :£120m of transformation funding
  • Year 3: £153m of transformation funding
  • Year 4: £70m of transformation funding
  • Year 5: £48m of transformation funding

The process to allocate the first £60m of transformation funding in 2016/17 has been open for business since 1st April and the aim is that all 10 localities will be supported to apply in 2016/17.

How do localities apply?

A robust Locality Plan is a pre-requisite for access to the Fund and Locality Plans must be supported by local authorities and all NHS stakeholders, as well as being signed up to by Health and Wellbeing Boards.

The Locality Plan and investment proposals which come from it will be seen as the first call on the Fund, although GM wide transformation proposals will also be required to support financial sustainability.

While there is room for innovation, the Fund will focus on transformation plans that we already identified in the Strategic Plan and are progressing with through Locality Plans.

How have bids been assessed?

All applications to the Fund will be subject to a rigorous independent evaluation. The initial transformation fund proposals going through this process were received on 15th June 2016.

The proposals received on this date were from Stockport, Salford, Tameside & Glossop and Manchester.

Each proposal has been assessed against the evaluation criteria agreed by the Strategic Partnership Board (SPB). This included reading the proposal forms and background documentation for all proposals and reviewing the 5 year finance and activity plans and Cost Benefit Analysis models.

What is the assessment criteria for bids?

The criteria for Transformation Funding have been set as follows.

Bids must:

  • Deliver the GM vision
  • Enable transformational change
  • Consolidate resources
  • Secure value for money
  • Facilitate learning for others

Table 1: Criteria for the Transformation Fund

Deliver the GM vision

  • The initiatives supported by the fund must be aligned with the transformation initiatives and the broader vision for health and social care reform in GM
  • The initiatives supported by the fund need to contribute to the GM Public Sector Reform programme

Enable transformational change

  • The fund must drive forward shifts in activity and productivity required to close locality gaps
  • The fund should deliver initiatives that lead to lasting transformational change, as opposed to temporary or “business as usual” activities
  • The fund must support change at pace – allowing progress to happen quickly with a shift from planning to implementation

Consolidate resources

  • The fund should be used to support scalable integration across health and social care boundaries, organisational boundaries and localities across Greater Manchester
  • The fund should support organisations to remove waste and target resources to the front line

Secure value for money

  • The initiatives supported by the fund must deliver a high rate of return within the CSR period – and should benchmark well in relation to ambition and replacement costs.
  • The fund should be managed and governed efficiently with a commercial discipline, which is underpinned by transparency, fairness and accountability

Facilitate learning for others

  • The fund should support innovative initiatives which are evidence based and take account of proven best-practice in their design
  • The fund should seek to build an evidence base of what works and support the open sharing of this information to build a culture of learning

How will Transformation Fund investments be monitored and assessed?

Monitoring systems will need to be put in place to evaluate progress against criteria. Robust investment agreements will be entered into to ensure delivery.

A process for supporting all Locality Plans and investment propositions to demonstrate how they achieve clinical and financial sustainability will be put in place in all localities and within the GM transformation programmes.