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DHL to supply hospital equipment

DHL to supply hospital equipment

Version 4	Version 5
DHL to supply hospital equipment Tue Sep 05 08:01:49 UTC 2006	DHL to supply hospital equipment Tue Sep 05 09:41:21 UTC 2006
The NHS has struck a deal with German company DHL to privatise the supplying of goods and equipment to hospitals.	The NHS has struck a deal with German company DHL to privatise the supplying of goods and equipment to hospitals.
~~From 1 October, DHL - best known for delivering parcels - will supply everything from stationery to bed linen and MRI scanners.~~	From 1 October, DHL - best known for delivering parcels - will supply everything from stationery to bed linen and MRI scanners to English hospitals.
The deal is opposed by trade unions and will see 1,700 NHS employees transferred to the private sector.	The deal is opposed by trade unions and will see 1,700 NHS employees transferred to the private sector.
More than £22bn of orders over 10 years will be affected. The company says it will save the NHS £1bn in that period.	More than £22bn of orders over 10 years will be affected. The company says it will save the NHS £1bn in that period.
The contract will be officially announced on Tuesday.	The contract will be officially announced on Tuesday.
DHL Logistics chief executive John Allan told BBC News quality would not be sacrificed to save money.	DHL Logistics chief executive John Allan told BBC News quality would not be sacrificed to save money.
Staff across the NHS will be watching this privatisation deal, which will be viewed by many as symbolic of what is to come Unison	Staff across the NHS will be watching this privatisation deal, which will be viewed by many as symbolic of what is to come Unison
"We are hoping to achieve efficiency benefits in buying for the NHS, which they will be able to feed back into patient care.	"We are hoping to achieve efficiency benefits in buying for the NHS, which they will be able to feed back into patient care.
"But we will be working very closely with clinical specialists - with doctors, with the trusts - to ensure we procure for them precisely the products they want."	"But we will be working very closely with clinical specialists - with doctors, with the trusts - to ensure we procure for them precisely the products they want."
Some critics fear that DHL may opt for cheaper, inferior products and that the company will have excessive market power which could lead to small manufacturers suffering.	Some critics fear that DHL may opt for cheaper, inferior products and that the company will have excessive market power which could lead to small manufacturers suffering.

But Mr Allan told BBC Radio 4's Today programme the doctors and trusts would decide which clinical products to buy.	But Mr Allan told BBC Radio 4's Today programme the doctors and trusts would decide which clinical products to buy.
"Our job then will be simply to get the best possible price we can for the standard of quality they have specified."	"Our job then will be simply to get the best possible price we can for the standard of quality they have specified."
DHL had "set out to ensure" its former NHS employees' terms and conditions - including pensions - would be "protected", Mr Allan said.	DHL had "set out to ensure" its former NHS employees' terms and conditions - including pensions - would be "protected", Mr Allan said.
Staff will actually be very positive once they see what it is we have to offer DHL Logistics chief executive John Allan	Staff will actually be very positive once they see what it is we have to offer DHL Logistics chief executive John Allan
And the company planned to create more than 1,000 extra jobs.	And the company planned to create more than 1,000 extra jobs.
"Staff will actually be very positive once they see what it is we have to offer," he added.	"Staff will actually be very positive once they see what it is we have to offer," he added.


The deal is effectively a privatisation of part of NHS Logistics as well as a part of the NHS Purchasing and Supply Agency.	The deal is effectively a privatisation of part of NHS Logistics as well as a part of the NHS Purchasing and Supply Agency.
The supplier's former chairman David Hall said it had a good performance history and was not a part of the NHS that "needs tinkering with".	The supplier's former chairman David Hall said it had a good performance history and was not a part of the NHS that "needs tinkering with".
"There are many more important areas that I would have thought would have had the government's attention," he added.	"There are many more important areas that I would have thought would have had the government's attention," he added.


Hundreds of NHS Logistics workers who are members of Unison are already being balloted by their trade union after it was discovered ministers were considering outsourcing the contract.	Hundreds of NHS Logistics workers who are members of Unison are already being balloted by their trade union after it was discovered ministers were considering outsourcing the contract.
'Sad day'	'Sad day'
The union's head of health, Karen Jennings, said it made "no sense" to break up NHS Logistics.	The union's head of health, Karen Jennings, said it made "no sense" to break up NHS Logistics.
"This is a very sad day for the NHS," she said.	"This is a very sad day for the NHS," she said.
"The government has not listened to the workforce or to reason.	"The government has not listened to the workforce or to reason.
"Staff across the NHS will be watching this privatisation deal, which will be viewed by many as symbolic of what is to come."	"Staff across the NHS will be watching this privatisation deal, which will be viewed by many as symbolic of what is to come."
Results of the ballot are due to be announced next week.	Results of the ballot are due to be announced next week.
Savings promise	Savings promise
The move is the biggest example of what some regard as creeping NHS privatisation.	The move is the biggest example of what some regard as creeping NHS privatisation.
Others include private sector providers taking over doctors surgeries and performing minor operations.	Others include private sector providers taking over doctors surgeries and performing minor operations.
DHL says it can make savings by reducing the range of products available to hospitals - for example, at the moment hospitals have a choice of 133 different paper staplers to choose from in a catalogue.	DHL says it can make savings by reducing the range of products available to hospitals - for example, at the moment hospitals have a choice of 133 different paper staplers to choose from in a catalogue.
Goods and services supplied by DHL will include food, bed linen, cleaning products, surgical and medical equipment and stationery.	Goods and services supplied by DHL will include food, bed linen, cleaning products, surgical and medical equipment and stationery.