Posted on: 3 March 2023
Dear colleagues,
I am writing to update you on some important work we are about to undertake over the coming months to review the functions, structures and ways of working of our Integrated Care Board (ICB).
Our organisation has been in existence for nine months, and I am proud of what we have achieved in that time. We have also heard from colleagues that there is still work to do in terms of clarifying the relationship and connectivity between West Yorkshire teams, local places and provider collaboratives. The aim of this work is to review our functions structures and ways of working to ensure they are as effective as possible to support our priorities and ambitions. This is within the context of the announced changes to the NHS Integrated Care Board’s (ICBs) running cost allowances, set out in a letter I received this morning (Friday 3 March) from NHS England colleagues.
Baseline running cost allowances for ICBs have been held flat in cash terms in 2023/24. This was published through the annual operational planning guidance and the supporting publication of allocations for 2023/24 to 2024/25.
The requirement now is that ICBs plan to reduce their running costs by 20% by 1 April 2024, with an additional 10% by April 2025, a total of 30%. NHS England have published future year running cost allowances with three-year allocations for each ICB that reflect this 30% reduction – which you can read here.
It is worth noting that the running cost allowance for our ICB does not include programme costs, nor the administration within providers and provider collaboratives.
In taking this work forward, we will continue to consider our operating model and the functions that should sit across our places, provider collaboratives and partner organisations, to ensure that we have capacity and a focus on delivering the best services and outcomes for people and communities in West Yorkshire.
We have a good amount of time to get this right, and we will work together to manage any changes as smoothly and efficiently as we can. I have asked Tim Ryley as one of our ICB Executives to lead the work we need to do over the coming months, and I’m grateful he has agreed. Tim will lead a programme team, bringing together corporate directorate and place colleagues to work collectively on the review of the operating model. The first phase will be completed by June 2023. This will set out options for the future operating model, with an expectation that providers and collaboratives will pick up more functions in places and across West Yorkshire.
We already have excellent examples of this way of working, including for specialised commissioning in mental health, learning disabilities and autism, and in the work of West Yorkshire Association of Acute Trusts on planned care.
We will of course work collaboratively with yourselves, our human resources team and trade union partners to manage any changes as smoothly and efficiently as we can. We will be arranging an all staff briefing to discuss this in more detail next week and will develop some frequently asked questions (FAQs) as soon as possible. Please don’t hesitate to speak to your local accountable officer / place lead or director in the meantime.
It’s helpful to note that the delegation of commissioning responsibilities for pharmaceutical, general ophthalmic and dental (POD) services functions will move from 1 April 2023 into our ICB. The running costs for these services and staff who will transfer on 1 July 2023, will be brought alongside.
Everything we do next will be guided by our West Yorkshire values and in service of our mission to improve outcomes for local people and communities. I want to emphasise that I know headline news on cuts to running cost allocations can be unnerving and change is often destabilising. If we look beyond this, there remains a strong commitment to ICBs, and ICSs. Our ICS has led the way in thinking about system working, provider collaboration and the benefits of working together. This will continue to be the case.
The work we have done in unprecedented times has required leadership from every seat in the organisation. I am proud to be your Chief Executive and of what we have achieved together so far as an ICB.
Yours sincerely,
Rob Webster CBE
Chief Executive, NHS West Yorkshire Integrated Care Board
CEO Lead for West Yorkshire Health and Care Partnership