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DHL to supply hospital equipment DHL to supply hospital equipment
(about 1 hour 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.From 1 October, DHL - best known for delivering parcels - will supply everything from stationery to bed linen and MRI scanners.
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.
The deal is effectively a privatisation of part of NHS Logistics as well as a part of the NHS Purchasing and Supply Agency. 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 UnisonStaff 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.
"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."
The deal is effectively a privatisation of part of NHS Logistics as well as a part of the NHS Purchasing and Supply Agency.
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.
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 promiseSavings 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.
Other examples 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.
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.