Croydon Clinical Commissioning Group has joined forces with its local authority to create a £1.7bn plan to change the way health and social care services for over 65-year-olds are commissioned.

Final approval was agreed at Croydon CCG’s board meeting on Tuesday following sign off from Croydon Council at their cabinet meeting last week.

The CCG and council, along with partners in the local health sector, will now explore an outcomes based capitation payment model for the contract.

The contract will be drawn up over the next year and will have an expected start date of 2016.  

While the financial value of the contract is yet to be decided upon, it is estimated to require a budget of £1.7bn over 10 years.

Its first year budget of £178m will largely be covered by the CCG which has put forward £139m, leaving the London borough to providing the remaining £39m.  

A full range of services including social care, elective and non-elective acute care, primary care, mental health, community services and continuing care could be included in the contract.

Over 65-year-olds represent 13 per cent of Croydon’s population and is expected to grow to more than 20 per cent over the next 10 years.

Commissioners and the council are looking at a provider alliance model for the contract, where all providers would have an equal stake in delivering good outcomes for patients.

The preferred option is to take the most capable provider route, which would give local providers an opportunity to demonstrate they can deliver the required outcomes.

The contract could go out to procurement if local providers were unable to prove their suitability.

Anthony Brzezicki, clinical chair of Croydon CCG, said: “A lot of people have been involved in this project and there is growing belief that this approach offers a once in a generation opportunity to deliver a much needed step-change improvement in health and social care services.”

Councillor Louise Woodley, Croydon’s cabinet member for people and communities, said: “This is an important piece of work that seeks to ensure the older members of our community can live long, healthy and dignified lives, preferably independently.”