Costing Community Care by Ann Netten Jennifer Beecham

Author:Ann Netten, Jennifer Beecham [Ann Netten, Jennifer Beecham]
Language: eng
Format: epub
ISBN: 9781138612105
Barnesnoble:
Publisher: Taylor & Francis
Published: 2020-06-30T00:00:00+00:00

5 Conclusion

A number of different objectives have been identified in pricing and charging for services, and the importance of being clear about these and how they fit in with other policy objectives has been emphasised. National policies will, of course, have very different interpretations locally. Local authorities will need to make explicit these interpretations and within these the role and objectives of pricing and charging. In particular, prices and charges provide valuable mechanisms in providing value for money, a fundamental aim of the reforms.

Those making decisions about prices in statutory agencies also need to be aware of the indirect effects of their decisions. Whether they like it or not they are operating in markets, if only internal markets. As local authorities are the major provider in most of these markets, their pricing strategies will have a profound effect and they need to assess the current market structures and the likely impact of their strategies. An awareness of the pitfalls in setting prices is essential but it is clear that for pricing strategies to reinforce the aims of the reforms, prices should be based on the opportunity cost of services. In deciding how to estimate the cost, it is necessary to go through the four stages identified in Chapter 2 while keeping in mind the pricing objectives.

A major obstacle in the process both of estimating costs and setting prices and charges is lack of information. Problems of inadequate information in estimating costs have been dealt with elsewhere in this volume. In deciding on prices and charges local authorities will have to learn largely from experience. To do this, comprehensive monitoring and evaluation of the information collected are essential. Monitoring systems need to allow analysis of the links between prices and charges and patterns of demand. It is only by monitoring such changes and maintaining the link between costs, prices and charges that social services departments can keep in touch with the resource implications of changing patterns of preferences for the way in which needs are met.

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