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| Surge in privatisation threatening free NHS treatment, unions say | Surge in privatisation threatening free NHS treatment, unions say |
| (7 months later) | |
| Trade unions representing half a million NHS workers have warned that a “surge in privatisation” of the health service risks creating a system based on ability to pay, rather than need. | Trade unions representing half a million NHS workers have warned that a “surge in privatisation” of the health service risks creating a system based on ability to pay, rather than need. |
| In a strongly worded statement, leaders of the major health unions representing staff across the NHS said the growing involvement of private companies threatened one of its core functions: the provision of free treatment based on need. | In a strongly worded statement, leaders of the major health unions representing staff across the NHS said the growing involvement of private companies threatened one of its core functions: the provision of free treatment based on need. |
| “There is a real danger that if we continue down this road we could end up with a repeat of the American experience where income, rather than need, dictates the level of care a patient can expect,” said the nine leaders of NHS staff, including midwives, nurses and radiographers. | “There is a real danger that if we continue down this road we could end up with a repeat of the American experience where income, rather than need, dictates the level of care a patient can expect,” said the nine leaders of NHS staff, including midwives, nurses and radiographers. |
| The warning comes as updated figures show the scale of private-sector involvement in the health service since the government’s unpopular shakeup of the English NHS under the Health and Social Care Act 2012. | The warning comes as updated figures show the scale of private-sector involvement in the health service since the government’s unpopular shakeup of the English NHS under the Health and Social Care Act 2012. |
| Contracts monitored by the NHS Support Federation campaign group show that private firms have won £5.5bn worth of NHS clinical contracts since April 2013 – more than a third of the total value of contracts put out to tender. So far this year, private companies have won 37% of the £6bn worth of clinical contracts awarded. Others worth £5bn remain in the pipeline. | Contracts monitored by the NHS Support Federation campaign group show that private firms have won £5.5bn worth of NHS clinical contracts since April 2013 – more than a third of the total value of contracts put out to tender. So far this year, private companies have won 37% of the £6bn worth of clinical contracts awarded. Others worth £5bn remain in the pipeline. |
| Dave Prentis, from Unison, the biggest health union, said: “There is no evidence to suggest the private sector does health any better than the NHS. Even such monumental failures as Hinchingbrooke have done little to dampen the government’s zeal for the market.” | Dave Prentis, from Unison, the biggest health union, said: “There is no evidence to suggest the private sector does health any better than the NHS. Even such monumental failures as Hinchingbrooke have done little to dampen the government’s zeal for the market.” |
| Prentis said that large amounts of money were being wasted drawing up and scrutinising each bid, money that could be better used to improve patient care. And he added that many commissioning services are being advised by the private sector, “making it even more likely that healthcare firms will win out”. | Prentis said that large amounts of money were being wasted drawing up and scrutinising each bid, money that could be better used to improve patient care. And he added that many commissioning services are being advised by the private sector, “making it even more likely that healthcare firms will win out”. |
| “The public wants well-run, efficient health services. They are not so keen on private firms putting shareholders and profits before patients. And they are increasingly nervous that ability to pay could soon count for more than someone’s need for help,” he added. | “The public wants well-run, efficient health services. They are not so keen on private firms putting shareholders and profits before patients. And they are increasingly nervous that ability to pay could soon count for more than someone’s need for help,” he added. |
| There have been several high-profile private NHS contracts that have run into trouble – among them Circle at Hinchingbrooke hospital, Serco’s £140m contract for community services in Suffolk or Arriva’s North-West ambulance service deal. But analysts say the UK’s health system remains attractive to private companies – particularly those from the US. | There have been several high-profile private NHS contracts that have run into trouble – among them Circle at Hinchingbrooke hospital, Serco’s £140m contract for community services in Suffolk or Arriva’s North-West ambulance service deal. But analysts say the UK’s health system remains attractive to private companies – particularly those from the US. |
| Vernon Baxter from Health Investor magazine, which monitors the UK health market, said there is a huge global appetite to invest in the NHS. “The US market has been heavily invested into and there is a scarcity of assets … [the major US companies] have bought everything in North America and now American capital is looking at buying a lot of the assets in the UK and western Europe.” | Vernon Baxter from Health Investor magazine, which monitors the UK health market, said there is a huge global appetite to invest in the NHS. “The US market has been heavily invested into and there is a scarcity of assets … [the major US companies] have bought everything in North America and now American capital is looking at buying a lot of the assets in the UK and western Europe.” |
| Baxter claimed that although there had been some high-profile failures involving private companies in other parts of the health sector – including musculoskeletal pathways and orthopaedics – they had proved highly successful. “Away from some of the more headline-grabbing contracts, the private sector is quietly becoming more and more important.” | Baxter claimed that although there had been some high-profile failures involving private companies in other parts of the health sector – including musculoskeletal pathways and orthopaedics – they had proved highly successful. “Away from some of the more headline-grabbing contracts, the private sector is quietly becoming more and more important.” |
| He added that this was unlikely to change as commissioning groups were put under growing pressure to put major contracts in health and social care out to tender. “Most healthcare investors I talk to say that in the long term, economics will outweigh politics. Investors don’t believe it is possible for the UK system to perpetuate itself in its current form, hence they see this as a very good place to be.” | He added that this was unlikely to change as commissioning groups were put under growing pressure to put major contracts in health and social care out to tender. “Most healthcare investors I talk to say that in the long term, economics will outweigh politics. Investors don’t believe it is possible for the UK system to perpetuate itself in its current form, hence they see this as a very good place to be.” |
| He acknowledged there were difficulties in the short term but added: “The weight of capital that wants to invest into the UK health and social care sector remains very significant. | He acknowledged there were difficulties in the short term but added: “The weight of capital that wants to invest into the UK health and social care sector remains very significant. |
| Trade union leaders warned that the huge growth in private sector involvement was bad for patients and staff. | Trade union leaders warned that the huge growth in private sector involvement was bad for patients and staff. |
| “With more demands on the NHS the health service needs stability, and its increasingly stretched health workers need security,” they said. “They don’t need to be worrying about their pay or their pension being eroded by private equity speculators, or indeed whether they’ll still have a job if the contract fails.” | “With more demands on the NHS the health service needs stability, and its increasingly stretched health workers need security,” they said. “They don’t need to be worrying about their pay or their pension being eroded by private equity speculators, or indeed whether they’ll still have a job if the contract fails.” |
| The joint statement added that with resources increasingly scarce, the effort to create a market in the NHS was proving a huge waste of public money. It called on the government to end “its failed privatisation experiment”. | The joint statement added that with resources increasingly scarce, the effort to create a market in the NHS was proving a huge waste of public money. It called on the government to end “its failed privatisation experiment”. |
| It continued: “The billions spent creating the internal market, in which private firms are thriving, could have gone on patient care … every time a contract collapses, it’s taxpayers who have to step in and pick up the tab.” | It continued: “The billions spent creating the internal market, in which private firms are thriving, could have gone on patient care … every time a contract collapses, it’s taxpayers who have to step in and pick up the tab.” |
| A spokesperson for the Department of Health said only 6.3% of the overall NHS budget was spent on commissioning private providers and said private sector involvement had been a fact of life in the NHS since 2003. | A spokesperson for the Department of Health said only 6.3% of the overall NHS budget was spent on commissioning private providers and said private sector involvement had been a fact of life in the NHS since 2003. |
| “The use of the private sector amounts to around six pence in every pound the NHS spends, an increase of just one penny since May 2010. Charities, social enterprises and other organisations, such as Macmillan Nurses, provide vital services for patients, but only when local doctors decide it is in the best interests of their patients.” | “The use of the private sector amounts to around six pence in every pound the NHS spends, an increase of just one penny since May 2010. Charities, social enterprises and other organisations, such as Macmillan Nurses, provide vital services for patients, but only when local doctors decide it is in the best interests of their patients.” |