Nigel Hawkes, Health Editor
Win luxury hampers plus Waitrose vouchers & guidebooks
New NHS contracts that boosted hospital consultants’ pay by more than a quarter have led to a fall in productivity and the number of hours worked, a report by MPs has found.
Lauded as a “something for something” deal when it was introduced in 2003, the contract was closer to something for nothing, said Edward Leigh, the chairman of the Public Accounts Committee. Consultants’ pay had risen by an average of 27 per cent, but their working hours had fallen and there had been no measurable increases in productivity.
The Department of Health underestimated the cost of the contract by at least £150 million over three years, and rushed its implementation, the committee found. Consultants’ work plans, which were supposed to be more tightly controlled, were drafted too quickly and often consisted of no more than what the consultant already did, or planned to do.
The contract did improve recruitment and retention, however, and enabled consultants to catch up with the earnings of other similarly qualified professionals.
The growth in the amount of private work undertaken by consultants had been halted, and patients were now more likely to be seen by a consultant than they were a decade ago.
The committee concluded that the increased pay would be justified only if it also led to improvements in productivity.
Despite ministers’ expectations that the change would result in a 1.5 per cent annual gain in productivity, the department’s own figures suggested that productivity fell by 0.5 per cent in 2004, the first full year of the contract, the report concluded. Figures for 2005 and 2006 are not yet available.
Mr Leigh said: “Anyone who is puzzled how large quantities of money can be poured into the NHS to so little effect should examine the example of the new contract for consultants.
“The basic aims of the new pay deal were commendable: to make NHS work more attractive to consultants and private practice less so, to give NHS managers more control over the consultants’ working week, and to increase the amount of time they spend on directly caring for patients.
“In the event, the introduction of the deal was rushed, with NHS managers left in the dark by the Department of Health over what it wanted from the contract. The department pushed to get the contract in place at all costs and many managers agreed hours of work with their consultants which the trusts could not afford.”
While the numbers of consultants rose by 13 per cent, total consultant activity increased by only 9 per cent and the number of patients treated per consultant fell year on year until 2005-06.
There was “little evidence” that hoped-for changes – such as provision of weekend and evening clinics – had materialised, and the average consultant’s NHS work fell from 51.6 to 50.2 hours a week.
The new contracts were agreed in 2003 after two years of negotiation between the department and its counterparts in the devolved assemblies, NHS employers and consultants’ representatives in the British Medical Association (BMA).
The department budgeted an extra £565 million for the first three years of the contract, but in the event it had to pay out £715 million. Much of the additional cost was due to higher-than-expected payments for consultants being on call outside regular hours.
The BMA said that hospital consultants were worth every penny of their new salaries and that criticism of their pay was unjust and unwarranted.
Jonathan Fielden, the chairman of the BMA consultants committee, said: “The chairman of the PAC shows a complete lack of understanding about how consultants work.
“He ignores the vast efforts that consultants have made to reduce waiting times and improve patient care and fails to appreciate the enormous pressure that hospital trusts have been under to meet government targets.”
Norman Lamb, the Liberal Democrat health spokesman, said: “You can’t blame consultants for accepting this generous contract, but why did ministers sign off this settlement when it was clearly such a bad deal for taxpayers and patients?”
Read the training tips and advice that helped our London Triathletes
Times Online's new TV show helps you make the right decisions for your pet
Read our exclusive 100 Years of Fleming and Bond interactive timeline, packed with original Times articles and reviews
The latest travel news plus the best hotels and gadgets for business travellers
Shortcuts to help you find sections and articles

A treasure trove of baubles, booty and stylish quests

50% off top restaurants, book online

2007
£47,995
2008
£42,945
06/2006
£40,850
Great car insurance deals online
£33,000
Macmillan Cancer Support
Central/South West
£50k
NHS
Nationwide
£
£30k OTE
Meltwater News
Nationwide
circa £70k
Central Office of Information
London
5% below developer pre-launch price!
Luxury Appts, beautiful gardens w/ Thames views
Great Homes Available on a shared Ownership Basis
Great Investment, River Views
Visit the ‘entertainment capital of the world’
at great sale prices!
Christmas Cruises
From only £995pp
APTs East Coast now from only
£2425pp.
Great travel insurance deals online
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times. Globrix Property Search - find property for sale and rent in the UK. Visit our classified services and find jobs, used cars, property or holidays. Use our dating service, read our births, marriages and deaths announcements, or place your advertisement.
Copyright 2008 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
I did work in a hospital and whilst we have consultants banging on about how much work they do do, I beg to differ! On many occasions have I seen them doing absolutely nothing, on wards, whilst patients are waiting to be seen, they are sat in the Doctors room discussing their pensions and how under paid they are?! Well I'm sorry! I've seen it for myself and they don't deserve to be paid so much!
What about the other staff, ward clerks, medical records staff, secretaries. These people bust a gut and yet the increment they receive doesn't cover inflation!!
The NHS is in so much debt and they have no clue where they can save money! I have since left the NHS because they do not value their employees and I'm sick of seeing the way taxpayers money is wasted.
It makes me sad to see the NHS in this way and it will continue going downhill.
tee, manchester,
The days of the surgeon making his money by carving up the rich man in his castle while tending to the sick in the poor house for free are thankfully long gone. Thanks to a steadily more efficient NHS waiting lists are now considerably shorter and as a result private practice, certainly in the provinces, is declining. It is only fair that NHS consultants are now being paid somewhere nearer their market value than before for the work they are actually doing. I suppose after all the concerted GP bashing by the press over the last few months our consultant colleagues deserved their share of jaundiced and green eyed coverage. As for their supposed golfing prowess I would like to report that in our annual Consultants v. GPs golf match the GPs were victorious 8 out uf 10 times.
Ulrich Pfeiffer, Liverpool, UK
It made me very very angry to hear people say that doctors work too little for too much money.
My mum is a doctor. She looks after children with infections. She has done a consultant job for nearly 2 years. She gets into her hospital every day by 7am and leaves work around between 5.30 (a good day) and 7.30 (bad day but not the worst). Once a week she stays at work all evening when she is on call to catch up on paperwork and email and things like this. Even on the train home (which takes over an hour) she uses her blackberry emails to do her work.
I donât think she should have to work so hard. I know all the children she looks after are very sick but she deserves to have time off to really rest and relax and have lots of fun.
So I think people who say doctors donât work enough are just showing their ignorance. It would be impossible for my mum work any harder. I donât want her to hear what this because it will make her sad or make her work harder which would not be fair
Mia, aged 13, Brighton, UK
Every consultant I have come across does private practise a couple of days a week. So quite how this 50 hours a week figure is arrive dat would be interesting.
Bill Deedes, Winchester,
It is interesting to compare this with the situation for GP's, in both situations the DoH believed senior doctors (consultants and GP's) were working in an inefficient and wasteful manner, spending too much time on the golf course or performing private practice. In both situations the reality was a committed and dedicated workforce working way beyond the basic needs of their contracts, this only become obvious when performance related pay was introduced.
Andy B., Manchester, UK
Many Consultants are still working in excess of their contracts.
As a monopoly employer the NHS has managed to pay far less than an open market would demand for the majority of Consultants.
This article looks suspiciously like the doctor-bashing that nowadays always precedes the annual pay negotiations.
BrummyDoug, Birmingham, England
We did get a pay increase for basically doing the same work. The difference for me is that I am now paid for working Saturday morning and for working on-call all the time (yes, 24 hours a day 7 days a week) when before I did it for free. I feel that my commitment to working for the NHS is now recognised, when in the past that was taken for granted. Well done to the BMA for negotiating the deal and well done to the Government for trying to be fair with one group of public sector workers. Unfortunately, it hasn't spread its largesse to the the nurses and other staff.
Paul Godwin, Keighley, UK
how many other professions would work 50+ hours a week for 37.5 hours pay?
The new contract, has started only partially to redress this imbalance.
Still working 50+ hours a week and only getting paid for 44 hours.
No degree in maths needed!
Yes more pay, yet no more work being done as I am already working flat out.
Can a politician with a GCSE see the logic?
Tim, newcastle, tyne and wear
The Government said doctors spent their afternoons on the golf course or in private practice.
The doctors said they worked 51 hours a week.
The Government said the doctors were lying.
The Government jumped at the chance to put doctors on a contract of around 40 hours a week, which is what they thought the doctors actually worked.
No surprise then that the doctors (who weren't lying) had to do more than 40 hours work simply to maintain a service (therebye boosting their pay on the new contract). However, that turned out to be fewer hours than they worked previously, so "productivity" has not improved.
And now of course doctors have to do so many other things (at the behest of Government) such as pointless paperwork and administration, managing hospital services, training junior staff and medical students that I wonder how they find any time to see patients.
Johnson, Manchester, UK
Jack Target - Oh look, another defender of medical 'professionals' who have fleeced the public and give virtually nothing in return. I'm not surprised that there is no perceptible improvement in the service. The cynicism in the medical profession would assure that their conscience is clear after taking such a huge slice of funding meant for the good of sick people. The public are funding one hours work and four and a half days golf.
Judy , Liverpool, england
Well said WMCC
The old contract was 37 hrs, and the consultants were doing 51.6 hrs. How many decades of unpaid overtime does that add up to I wonder, especially as some of this was in the middle of the night?. At least docs are paid for the hours they work now
BMCN.
bmcn, birmingham, England
Oh look! It's a another doctor-bashing exercise from a bureaucrat-come-politician. I hope this will not be followed by the sacking of essential medical personnel who then have to be re-employed on the quiet at a greater cost.
Jack Target, London, England
Actually John, whilst I agree with your sentiments, you are a bit off the mark when it comes to your comments about the impact managers have on patient care. All too often these days, in my opinion, they actually have a NEGATIVE effect upon patient care. If you want evidence of this you only have to look at the way most PCTs are handling the debacle which is the new dental contract. Of course, the end game might be to remove all but the most basic dental provision (extractions) from the NHS budget, and that provision to be made at PCT clinics staffed by understimulated therapists (note: not dentists). An even better example is the MRSA and C.Difficile pandemic in our hospitals
Bill Q, Derby,
the governemnet grossly underestimated what consultants did under the old contract- in particular the large amount of work that was not paid for. They believed their own propaganda that consultants spent all their time at private hospitals and the golf course.
The governement insisted on only paying for work done and that is what they have got.
wmcc, london,
It is all about control . Consultants are at the top of their field and governments by definition always want something for nothing under the 'dictum value for money ' . The prime test is what the effect would be if the Consultants did not come in to work as opposed to the so called NHS managers who have no impact on patient care . If these so called managers were really effective they would be in the private sector . So we really need to take a hard look at how people are valued whether as suppliers and demanders of services . The market is the best arbiter not an overbloated politically tainted bureacracy .
JOhn Bocchetti , Abu Dhabi , UAE