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Gordon Brown faces another backlash from Labour MPs, doctors and healthcare unions over plans to allow private companies to take over the management of struggling NHS trusts.
Bringing in commercial companies to run hospitals is one of several options that the Government has drawn up for improving the performance of NHS trusts that fail to meet new standards on quality, finance and care.
The Department of Health said that it would announce the new standards in October and start declaring lists of “underperforming” hospitals and primary care trusts. These will be given nine months to improve before being labelled “challenged” and considered ripe for takeover.
Ben Bradshaw, the Health Minister, said yesterday that in most cases a failing trust would be taken over by other NHS units, most likely foundation trusts or “turnaround teams” of health service staff. But it would be “dogmatic”, he said, to exclude private companies from the process.
“There may be examples where no NHS hospital is interested in taking over a failing hospital, or where local NHS managers think that, in order to have more competition and choice for people locally, bringing in a private manager on a franchise arrangement will be the most sensible idea,” he said.
He said that such takeovers would not amount to privatisation, because “the NHS will retain control of assets and the staff will still be NHS staff”.
Health campaigners and unions accused the Government of opening the door to private companies making “mega-bucks” from the taxpayer. However, many such companies say that they are unlikely to be interested in taking over failing hospitals.
Jonathan Fielden, the chairman of the British Medical Association’s consultants committee, said that doctors would have grave concerns if the private sector took over the management of NHS trusts. “Such a move would effectively see parts of the NHS become privatised.”
He said there was no evidence that the private sector would do a better job than NHS managers. “They would just aim to make a profit rather than the driver being the high-quality care our patients need,” he said.
Mike Jackson, national officer of Unison, the public sector union, welcomed help for hospitals suffering “complex long-term financial and systemic problems”, but said: “It is wrong to suggest that the NHS would be managed more efficiently by the private sector. The NHS has shown that it has the experience and business acumen to do it better.”
Geoff Martin, head of campaigns at Health Emergency, predicted that the move would provoke an “enormous row” within the Labour Party. “This could be the cause of another rebellion in Labour’s ranks. It means firms will be given the chance to make mega-bucks from the taxpayer.”
John McDonnell, Labour MP for Hayes and Harlington, said: “This is the privatisation of the NHS. It goes beyond anything Thatcher even dreamt of [and] will cause grief and anger in the heart of the Labour Party.”
Virgin Healthcare, BUPA, Nuffield Health, Boots, Sainsbury’s and Ram-say Health are among those already providing NHS services or expressing an interest in doing so. But most distanced themselves yesterday from the prospect of taking over large hospitals, saying that they favoured small-scale involvement with GP services or local commissioning. Debts got worse after takeover
Case study: Good Hope Hospital, Birmingham
The “performance regime”, published by the Government yesterday, is a warning to managers who fail to keep their trusts in order. But the first takeover of an insolvent NHS hospital by a private company was a failure — put right only when the NHS regained control.
Good Hope Hospital, which serves 450,000 people in Sutton Coldfield and North Birmingham, had no stars out of a possible three when its board signed a £1.3 million agreement with Secta, a group of health service consultants, in 2003 to oversee the running of the trust.
By 2006 the trust had a deficit approaching £20 million on a turnover of about £100 million. This led to the formal takeover of Good Hope by Heart of Birmingham, one of the Government’s foundation trusts, which have some financial freedoms but are part of the NHS.
Regional health authorities said that it was “timely” to end the Secta contract by mutual agreement and get on board a management team from a neighbouring and successful trust. Yet the formal takeover — as opposed to a hospital merger — marked a further step on the road of the health service operating in a more market-like environment.
Underperformance, superbugs, poor management — and now profit-making companies taking charge of public hospitals. Has the NHS got a place in the 21st century? Have your say below
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The government should start this new policy at home. Some imported management from industry might just get them out of the mire.
Simon Marshland, Bath, UK
in response to Jack Sprat, who is totally incorrect. the NHS is not being run by the consultants it is being run my non-medical managers who are destroying the NHS with their illogical and unimplementable rules and regulations, wasting money by not listening to the consultants and by being employed.
David Smith, London, UK
Those who enthuse about other health systems rarely have experience of them. I was nearly killed by the allegedly first class French health system. And I was charged for 20% of my treatment . Over the last 10 years I have had better and better experience of the NHS.
Dectora, London, UK
Allow a true competitive market and you will see the NHS improve. All this choice wanted by the gov is being restricted by the PCTs insisting that GPs only refer to named hospitals. If you want improvement give the control of referals to the GPs and allow the money to follow the patient.
TJ, Brent,
What's this 'free health care' rubbish.
I've worked 44 years, paying Tax and NI all this time.
My use of the 'free health service' has so far been marginal.
What I've noticed is a deterioration of services over the past 5 years in particular.
As for Dental Services on the NHS - when, where?
cap, Lincoln, UK
Organisations like the BMA make Aurthur Scargills Miners Union look positively meek and they are bleeding the NHS DRY! Record pay rises for Docs / Consultants while life saving drugs are denied. Some people are doing extremely well fm the NHS but not patients, unfortunately. Where's the money gone?
Graham, St. Albans, uk
It hurts to think that we have some fantastic doctors and nurses in this country.Why then do we always lag behind other countries. In poorer countries they don't have the waiting for operations like we do.When they get the diagnosis of the problem it gets the attention required Get the act together
Keith, Witney , U.K
I presume the private sector managers who are brought in to tackle poor performance in the NHS will not be the same private sector managers who have been such a success at Northern Rock, BAA, British Airways, Bradford&Bingley
JHB, Cambridge,
The only way private companies could make the health business more efficient and effective would be for them to freely operate in a market. It is only competition and the need for each business to make a profit that makes private businesses work.
R Mason, London, UK
Free health care was never, "Free". It was paid for, by the people and for the people. We paid for it, without choice. The theory being that, if we needed it, we got it. It was an Insurance policy! Now, we pay for it and we get precious little in return. In insurance, this would be illegal.
Marcel Arnall, Paris, France
It is NOT free healthcare. It is free at the point of delivery.
To use an analogy that suits the times, it's like a pre-pay phone that you have to top up every time you get your pay-cheque.
So stop calling it free. We pay for it already. And we're not getting value for money.
Matthew T. Brown, Glasgow, United Kingdom
I've been working int he NHS for 24 years and with the push for Foundation status (thank you John Reid - duh, one size does not fit all) what I would say is that we now have management-led services. Unsurprisingly there is enormous waste. Let the clinicians run and manage services; that would help
Dr Ian Burgess, Bristol,
I have worked in the NHS for 18 years, without doubt the NHS is being privatised regardless of these plans. This is just a natural path from the 'foundation' status that all trusts have to achieve.
Im afraid the NHS will not exist in ten years time other than as a regulating body
jason, norwich, England
NHS as a concept works; there are many examples e.g. Germany. The UK NHS is badly implemented and run by the consultants. Private health by definition is more expensive; now profit has to be made as well. Run the NHS like Germany and its fine. I have used both and UK is miles behind.
Jack Sprat, Bristol, UK
Shake it up with new ideas and approaches. I currently have sciatica. My GP sent me to be 'assessed' in a brand new facility , this took 6 weeks. The assessment then 'diagnosed' my sciatica and sent me to physiotherapy, wait another 4 weeks. Previously my GP sent me straight to physio. Improvement?
Paul Owen, Birmingham, UK
Private care is fine if we can pay our individual health insurance, but what happens if we can't during a recession and unemployment? Do we want a society where many people can't access basic healthcare? The NHS provides a safety net, private care doesn't. Can we 'afford' a society without the NHS?
UA, Bedford,
Free at the point of use. This did mean there had to be a producer monopoly (i.e. the BMA plus Unison and the nursing unions) nor a monopoly provider - HM Treasury. It also did not mean treatments such as IVF, cosmetic surgery, or curing foreigners. Let's reform it within the spirit of 1948.
Dave, Slough,
"I warn you not to be ordinary, I warn you not to be young, I warn you not to fall ill, and I warn you not to grow old." such irony that what neil kinnock said should now be applied to a labour government.
Philip Barnes, Preston, england
Does anybody actually believe Gordon Brown will actually do anything about identifiable trusts with poor records,the only independent part of Healthcare Commission is being phased out,Business as usual, - money wasting,patient bullying,bypassed services and huge non medical salaries will be paid.
mary foord brown, suffolk coastal,