Practical messages from research on the costs of care provision

1. Practical messages from research on the costs of care provision Harriet Ward, Lisa Holmes and Jean Soper Centre for Child and Family Research Loughborough

2. Why cost services? • Children cost money • More intensive interventions cost more • Transparency allows us to compare effectiveness • Financial costs to agency versus well being costs to child

3. Aims of initial study • To explore the relationship between variations in costs and the type of care for children with different needs • To devise methods for local authorities to calculate costs consequences for different types of provision

4. Data collection • Needs, experiences and outcomes for 478 children looked after by six local authorities • Illustrative not representative sample • Longitudinal (over twenty months) • Quantitative - MIS and case files • Qualitative Interviews with sub-sample

5. Costs • Service Provision Checklist • Information from finance departments • Interviews with social services staff

6. Time is money (1) • Social care processes are regulated by legislation • Looking after Children, Assessment Framework and now the Integrated Children’s System provide the tools to ensure that these processes are adequately undertaken • The ICS is underpinned by an explicit process model for children’s services BUT…….

7. Time is money (2) • In order to cost effectively we need to know what happens in reality • Bottom up rather than top down • Our costs are based on what actually happens rather than what should happen • Who does what and how long does it take?

8. Social worker activity • Direct client-related activity e.g. visits to the young person and their family • Indirect client-related activity e.g. form filling, meetings and liaising with other agencies • Indirect non client-related activity e.g. supervision and training

9. Processes 1. Decide child needs to be looked after (including activity for finding initial placement) 2. Care planning 3. Maintaining the placement 4. Leaving care/ return home 5. Find a subsequent placement 6. Review 7. Legal processes 8. Transition to leaving care services

10. Standard cost to social services of case management processes for a looked after child in foster care

11. Variation between local authorities Differences in: Policy and practice Proportion of out of authority placements Proportion of agency placements

12. Variation by placement type • Residential care costs per week roughly 8 times as much as foster care; 9.5 times as much as kinship care; 12.5 times as much as placements with own parents.

13. Costs vary according to children’s needs • Variation for different groups of children • Variation in types of placement • Variation in frequency of processes

14. The children • No evidence of additional support needs • Additional support needs • Emotional or behavioural difficulties • Physical or learning disability • Offending • Unaccompanied asylum seeking children • Combinations of above

15. Linking costs and outcomes • Estimated average annual cost for children with no additional support needs: £27,228 (c. AU$ 66,622) • Estimated average annual cost for children with EBD and who are offending: £79,167 (c.AU$ 193,706) • A very few (<3%) exceptional children can completely skew total costs

16. Linking costs and outcomes(No additional support needs) • Placement stability • Better opportunities for contact • Better educational outcomes • Meet eligibility criteria for additional support • A virtuous circle

17. Linking costs and outcomes(High support needs) • Least positive outcomes for children with emotional or behavioural difficulties AND offending behaviour • Frequent placement changes • Fewer opportunities for contact • Exclusions and changes of school • Not eligible or refusal of additional support • A vicious circle

18. Key Messages • Better cost estimates • Better informed decision making • Adopting a systems approach within the context of the costs of providing services to all children in need • A systems approach should also demonstrate how costs are spread across agencies • Packages of care • Joint commissioning

19. Key Messages • Children placed with parents or relatives often require intensive support; it is a false economy to consider these placements as relatively cost free • For some children postponing service provision only reduces short-term costs; more costly placements and services may be required in the long-term

20. Cost Calculator for Children’s Services • Computer application • Accompanied by a User Guide • Excel • Three spreadsheets: • Placement and child data • Unit costs • Calculations

21. Child and Placement data • Child’s d.o.b; gender; evidence of disability; offending behaviour • Evidence of emotional or behavioural difficulty (specific definition used in research study) • Start and end dates of placements • Placement type; educational or health facilities provided; l.a.provided; within l.a. area • Whether child left care at end of placement

22. What the Cost Calculator does • Selects the unit costs that are relevant to children’s characteristics and placements • Calculates cost of each placement or part placement • Builds up a table of costs for a user-specified time period • Aggregates costs for specified groups of children

23. Current model features • Facility for user to specify time periods • Actual dates of care plans, reviews and transitions to leaving care • Automatic allocation to needs group • Automatic identification of extra variations • Links to actual placement costs • Automatically updates costs (eg using inflator figures) • What if? analysis

24. Outputs: by child or by group • Total costs over selected time period • Total no. of days in placement • Total costs of each social work process • Total no. of occurrences of each process • Total costs by need • Total costs by placement type • Total costs by selected outcomes

25. Outputs: by child or by group • Average cost per child per day/week - overall and for each process • Average cost per week by need • Average no of weeks looked after by need • Average cost per week by placement type

26. Current programme (Research and development) Develop unit costs and incorporate into model: • Provision of services to all children in need • Education processes

27. Future plans Develop unit costs and incorporate into model: • Health/mental health processes • Youth justice processes • Socio-legal processes

28. Future plans (research) • 25 most cost intensive cases from each of four local authorities • Map how costs have accrued over time and between agencies • Explore relationship between needs, costs and outcomes • Identify how patterns of services and costs differ between agencies and authorities • Identify whether different configurations of services might have led to better outcomes • Use findings to inform future planning and commissioning

29. Strengths of the model • Deals in periods of time • Additional variations and processes can be added • Model flexibility allows development in response to user requests and feedback • All modifications will build on the Cost Calculator that has been developed