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High Cost Placements

High Cost Placements. The Provider’s Perspective. Why are the Costs of Placements High?. Levels of Need: All children and young people placed in our sector have complex and multiple needs. An increasingly high percentage have autism spectrum conditions and/or challenging behaviours

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High Cost Placements

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  1. High Cost Placements The Provider’s Perspective

  2. Why are the Costs of Placements High? • Levels of Need: • All children and young people placed in our sector have complex and multiple needs. An increasingly high percentage have autism spectrum conditions and/or challenging behaviours • High levels of need require high levels of staffing and staff with high levels of experience and expertise – staffing makes up 70-80% of school costs

  3. Why are the Costs of Placements High? • Patterns of placement and referral: • Planned placement no longer the norm – spot purchase through the year • Modal age of placement is 15 and often only after the breakdown of a number of previous placements • Most schools running under capacity with little certainty about whether or not places may be filled across the year

  4. Can services be provided ... • Better? We need a shared understanding of what we are doing and what is wanted. • Cheaper? We need to cover the costs of providing services and meeting needs. • Closer to home? Need market development and willingness to invest in outreach work.

  5. How can we develop new services? • Need recognition that the current “market” is imperfect in economic terms: • lack of competition in some areas • entry to market is relatively slow • mixed economy of providers who can’t all operate in pure market terms • There has to be a “business case” for developing new services –providers have to know that there is a market for the and that it is worth the significant investment they will have to make

  6. External Influences • SEND Green Paper due 2nd week March 2011: • Will consider high cost placements – potential for central funding OR national funding formula • Increased emphasis on parental choice of placement • Education Bill: • NMISS are able to become Academies via Free School route – a positive for LAs?

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