In November 2018 NHS England issued all Clinical Commissioning Groups (CCGs) nationally with a directive to reduce the Running Costs Allowance (RCA) (this is the budget for the administration and corporate overheads) by 20% by 2020/21.
It is also anticipated that there will be changes to the central funding for employers' pension contributions (increasing from 14.38% to 20.68%) which places further pressure on the CCG finances.
This has placed a significant financial challenge to both CCGs and it is simply impossible for each CCG to meet the reduction in costs and savings needed individually.
In addition, the NHS Long Term Plan published in January 2019 describes how the commissioning system needs to change and that CCGs are expected to become leaner and more strategic. The plan also sets out that by April 2021 all of England will be covered by an Integrated Care System, involving a CCG or CCGs working together with partners to streamline commissioning.
A lot of work has taken place to evaluate a long list of options and there are now three options being considered. These are:
Option 1 – Formal Merger of NHS Halton CCG and NHS Warrington CCG
Option 2 – Do Nothing
Option 3 – CCGs integrate with their respective Local Authorities
Please see the documents below for further Information
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You can also view our latest annual report (2018/19) by clicking here