Monitor 24 September 2013
- This research highlights some of the challenges that commissioners face in agreeing local contracts that deliver the best outcomes for patients.Effective local contracting in some health care markets is being undermined by :
- The pressure on local commissioners to balance annual budgets may act as a barrier to improving patient care.
- Commissioners and providers lack consistently good quality information
- Some commissioners do not have strong contracting skills
- Commissioners are not always able to negotiate with providers on equal terms
- Transaction costs can be high
- Contract enforcement is not always credible as commissioners are sometimes unwilling to use financial sanctions
- Commissioners often rely on good relationships with providers to overcome these challenges
