Croydon Clinical Commissioning Group and Croydon Council have approved plans to create an integrated health and social care contract for over 65s.
The CCG and council have yet to decide the value of the contract but it is estimated to require a budget of £1.7 billion over 10 years.
Community services, continuing care, elective and non-elective acute care, mental health, primary care and social care could all potentially be covered by the contract.
Croydon CCG and Croydon Council are looking into using a provider alliance model, where all providers on the contract have an equal stake in delivering good care. The council and CCG are also investigating an outcomes-based capitation payment model to reimburse the providers.
It is understood that the commissioners prefer to go down the most capable provider route to allocate the contract but could put it out to tender if local organisations are not up to the challenge.
The contract will be drawn up over the next year and has an expected start date of 2016.
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.”