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NHS competition could waste millions says Labour, after Care UK complains NHS competition could waste millions says Labour, after Care UK complains
(about 1 hour later)
Labour has warned that the NHS could be forced to spend millions on competition lawyers after the UK’s biggest private healthcare provider demanded an immediate investigation into a decision to award an elective care contract to a local health trust.Labour has warned that the NHS could be forced to spend millions on competition lawyers after the UK’s biggest private healthcare provider demanded an immediate investigation into a decision to award an elective care contract to a local health trust.
Care UK has been branded a bad loser after lodging a complaint with the NHS watchdog Monitor over the management of a contract by commissioners in north London.Care UK has been branded a bad loser after lodging a complaint with the NHS watchdog Monitor over the management of a contract by commissioners in north London.
Monitor has now begun an investigation into the decision by four GP-led clinical commissioning groups (CCGs) to award a contract to the Barking, Havering and Redbridge University Hospitals NHS Trust. The trust said it was extremely disappointed by the investigation and warned that it would delay the opening of a care centre.Monitor has now begun an investigation into the decision by four GP-led clinical commissioning groups (CCGs) to award a contract to the Barking, Havering and Redbridge University Hospitals NHS Trust. The trust said it was extremely disappointed by the investigation and warned that it would delay the opening of a care centre.
Andrew Gwynne, the shadow health minister, said the new competition rules could force the NHS to waste millions on competition lawyers.Andrew Gwynne, the shadow health minister, said the new competition rules could force the NHS to waste millions on competition lawyers.
“This is a worrying sign of what lies ahead for the NHS under the Tories,” Gwynne said. “David Cameron promised to put doctors in control, but his competition rules allow large private health companies to challenge the awarding of contracts to the NHS,” he added. “It’s a ridiculous state of affairs that ministers need to urgently address.” “This is a worrying sign of what lies ahead for the NHS under the Tories,” Gwynne said. “David Cameron promised to put doctors in control, but his competition rules allow large private health companies to challenge the awarding of contracts to the NHS. It’s a ridiculous state of affairs that ministers need to urgently address.”
Care UK, the UK’s largest private provider of health and social care, said that the GP-led commissioning groups had applied the wrong criteria in awarding the contract, with too much emphasis on price and too little weight on quality.Care UK, the UK’s largest private provider of health and social care, said that the GP-led commissioning groups had applied the wrong criteria in awarding the contract, with too much emphasis on price and too little weight on quality.
The contract covers a range of services, including general surgery, orthopaedics and ophthalmology, for 965,000 people.The contract covers a range of services, including general surgery, orthopaedics and ophthalmology, for 965,000 people.
Care UK, which has supplied elective care services in the area for several years, said the CCGs’ decision to take away the contract was discriminatory.Care UK, which has supplied elective care services in the area for several years, said the CCGs’ decision to take away the contract was discriminatory.
Campaign groups warned that the NHS could face high legal costs if private companies begin regularly appealing CCG decisions. Campaign groups warned that the NHS could face high legal costs if private companies begin regularly appealing CCG decisions. Prof Sue Richards, the co-chair of Keep Our NHS Public, said big private sector companies such as Care UK were full of the virtues of competition in theory, but claimed that they called in the lawyers when NHS hospitals were shown to be able to do a better job at a lower price.
Professor Sue Richards, the co-chair of Keep Our NHS Public, said big private sector companies like Care UK were full of the virtues of competition in theory, but claimed that when in practice NHS hospitals were shown to be able to do a better job at a lower price, they called in the lawyers. Richards said investigations into contracts could increase legal costs for the NHS. “The last chief executive of the NHS, Sir David Nicholson, warned that the NHS had become a competition lawyers’ paradise. How much will all of this cost and what could it have achieved if spent on patient care?” she said. “Don’t be a bad loser, Care UK.”
Richards said that investigations into contracts could increase legal costs for the NHS. “The last chief executive of the NHS, Sir David Nicholson, warned that the NHS had become a competition lawyers’ paradise. How much will all of this cost and what could it have achieved if spent on patient care?” she said. “Don’t be a bad loser, Care UK.” Richard Vautrey, the deputy chair of the BMA’s general practitioners committee, said GPs had concerns about complicated tendering processes, which could favour commercial companies. “We remain concerned that valuable resources that would be better spent on patient care are being diverted into an expensive tendering process and, potentially, into legal challenges about the outcome of contract awards,” he said.
Richard Vautrey, the deputy chair of the BMA’s General Practitioners Committee, said that GPs had concerns about complicated tendering processes, which could favour commercial companies.
“We remain concerned that valuable resources that would be better spent on patient care are being diverted into an expensive tendering process and, potentially, into legal challenges about the outcome of contract awards,” he said.
Care UK had revenues of almost £730m in 2014, with underlying profits of around £53m. The care provider, whose nationwide portfolio includes hospitals, GP surgeries and mental health centres, is owned by the private equity firm Bridgepoint Capital.Care UK had revenues of almost £730m in 2014, with underlying profits of around £53m. The care provider, whose nationwide portfolio includes hospitals, GP surgeries and mental health centres, is owned by the private equity firm Bridgepoint Capital.
Monitor said that the investigation would focus on whether the CCGs’ assessment of the bids was “consistent with their obligations to act in a transparent and proportionate way and to treat providers equally”.Monitor said that the investigation would focus on whether the CCGs’ assessment of the bids was “consistent with their obligations to act in a transparent and proportionate way and to treat providers equally”.
The NHS trust insisted that its successful bid had shown the best value for money, which was why it was chosen by the CCGs. “Putting the elective care centre into NHS hands means that patients will have better continuity of care, and waiting times will be reduced,” it said. The NHS trust insisted that its successful bid had provided the best value for money, which was why it was chosen by the CCGs. “Putting the elective care centre into NHS hands means that patients will have better continuity of care, and waiting times will be reduced,” it said.
Care UK said it welcomed the investigation, adding that the current situation could potentially cause loss of patient choice and raise issues around price competition.Care UK said it welcomed the investigation, adding that the current situation could potentially cause loss of patient choice and raise issues around price competition.
“Care UK is committed to continuing to operate the service to the highest possible standards and continuing to support the local NHS in addressing its performance challenges during the period of Monitor’s investigation,” it said.“Care UK is committed to continuing to operate the service to the highest possible standards and continuing to support the local NHS in addressing its performance challenges during the period of Monitor’s investigation,” it said.
A spokesman for the CCGs said: “Barking and Dagenham, Redbridge, Havering, and Waltham Forest Clinical Commissioning Groups are disappointed that this investigation has been launched. We will of course cooperate fully with Monitor to help them collect the information they require. A spokesman for the CCGs said: “Barking and Dagenham, Redbridge, Havering, and Waltham Forest clinical commissioning groups are disappointed that this investigation has been launched. We will of course cooperate fully with Monitor to help them collect the information they require.
“The CCGs remain confident that our arrangements to select a provider of these services were in the best interests of patients, in accordance with the NHS rules on procurement, choice and competition.”“The CCGs remain confident that our arrangements to select a provider of these services were in the best interests of patients, in accordance with the NHS rules on procurement, choice and competition.”