Collaborative Commissioning was established to transform the way healthcare is delivered and funded in New South Wales through a one-system approach.
Collaborative Commissioning is a partnership between local health districts (LHD), primary health networks (PHN), and other service providers to address community health needs and reduce hospital visits. This approach promotes local autonomy and accountability in delivering patient-centred care. In New South Wales, various regional partnerships are being developed to demonstrate the effectiveness of value-based payment methods and to assess potential financial benefits.
Benefits of Collaborative Commissioning include improving resource use through joint regional planning, focusing on value-based healthcare and the Quadruple Aim, anticipating future system demands and financial needs, and influencing funding reforms at the state and federal levels.
The guiding principles of Collaborative Commissioning are:
Patient Centred Co-commissioning Groups (PCCGs) work together to improve health outcomes for the local community by addressing high priority population needs and providing high quality care for all. This approach is supported by regional partnerships and four key components:
PCCGs receive temporary funding to kickstart their initiatives, with the aim of achieving financial sustainability over time by establishing governance structures, staffing, and partnerships with local providers and communities.
Joint Development Phase (JDP): This phase prepares partnerships for launching Collaborative Commissioning by allowing them to refine their local model of care and work towards sustainability.
Implementation Stage: Following the JDP, each PCCG enters a three-year implementation stage. All parties must sign a contract (the “Head Agreement") outlining roles, responsibilities, decision-making processes, and data sharing arrangements.