Our approach to commissioning

Background

From 1 July 2016, as directed from the Commonwealth Government, Primary Health Networks (PHNs) moved from delivering health services directly to the community, to delivering health services through a commissioning framework.

Commissioning refers to the strategic purchasing, monitoring and evaluation of health and related services. Commissioning decisions are informed by:

• Population health analysis
• Evidence review
• Service mapping.

SEMPHN’s commissioning cycle

As the figure below indicates, SEMPHN’s commissioning cycle involves five key stages.

1. Assessing needs and priorities

The commissioning process begins with determining the needs and priorities of the SEMPHN catchment, which is informed by:

• an analysis of population health data
• review of literature and evidence
• service mapping and/or
• stakeholder consultation.

2. Strategic planning and specifying services

Once the needs and priorities are identified, SEMPHN uses the data to determine the types of services to be commissioned, with a view of the proposed outcomes. The type of services to be commissioned will determine the approach to market and the target audience. 

3. Contracting and procurement

In this stage, SEMPHN approaches the market through a structured, measured approach. 

SEMPHN advertises requests for tender or proposals via eProcure.

eProcure outlines the scope, guidelines and assessment criteria that will be used to evaluate applications. The use of eProcure ensures that all services procured by SEMPHN have undergone a fair and transparent process.

Once the approach to market closes, in most cases, the application is assessed by an Evaluation Panel comprising of SEMPHN and external representatives with relevant expertise and knowledge in the industry.  If necessary, shortlisted candidates are reviewed by the Evaluation Panel to determine the final outcome.

The successful applicants then participate in a contract negotiation process.  SEMPHN works collaboratively with the preferred providers to develop a Contractor Project/Evaluation Plan that forms the basis of the contract between SEMPHN and the Provider. 

4. Monitoring and managing performance

The Contractor Project/Evaluation Plan indicates the anticipated outcomes of the commissioned services.  SEMPHN works closely with the Provider(s) to identify performance indicators that will be used to measure the intended outputs and outcomes.  Once the contract has been executed between SEMPHN and the Provider, the Provider needs to provide data/progress reports addressing the agreed outputs/outcomes at a frequency specified in the contract.

5. Reviewing services

SEMPHN’s commissioning cycle ends with the review of the procured services to determine whether the anticipated outcomes/outputs have been achieved.  The identified opportunities and challenges guide the procurement of future services.

Associated tags

• commissioning
• our approach