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| DHL to supply hospital equipment | DHL to supply hospital equipment |
| (about 4 hours later) | |
| 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 to English hospitals. | 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 is best known for delivering documents and freight, but has evolved into a company that is also involved in logistics and supply chain work on behalf of organisations across the world. | DHL is best known for delivering documents and freight, but has evolved into a company that is also involved in logistics and supply chain work on behalf of organisations across the world. |
| Its deal with the NHS is one of many contracts it has as part of its DHL Exel logistics division, which was formed in 2005. | Its deal with the NHS is one of many contracts it has as part of its DHL Exel logistics division, which was formed in 2005. |
| Market power | Market power |
| 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 |
| He added the company planned to create more than 1,000 extra jobs. | |
| 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. |
| HAVE YOUR SAY Higher costs for the same level of service Ian Hearn, Reading Send us your comments | HAVE YOUR SAY Higher costs for the same level of service Ian Hearn, Reading Send us your comments |
| 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. |
| "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. |
| The GMB union has said it will support members who want to take industrial action. | The GMB union has said it will support members who want to take industrial action. |
| 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. |
| 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. |
| Shadow health minister, Stephen O'Brien, said: "By gaining control of the NHS Logistics and most of the NHS Purchasing and Supply Agency, U.S. companies DHL, and its sub contractor Novation, will become responsible for spending £22bn of U.K. taxpayers' money." |