Unity

From Unity, 13 February 2010

Politicians need to rethink the role of the private sector in the NHS

by Gary Dennis

For all the pre-election pledges to protect its funding, the NHS is clearly threatened by major cuts. Yet one area of health policy has remained apparently immune from the debate on cost savings: the main parties all still cling to the dogma that efficiency in health care is best achieved by promoting competition and encouraging the private sector to provide services.
     As supporters of the NHS, we believe this consensus must be challenged.
     The NHS is spending £350 million a year on external management consultants—often at the expense of its own internal expertise.
     Repayments to companies profiting from PFI in the NHS are costing the taxpayer billions. There are many examples of independent sector treatment centres failing to carry out the volume of procedures for which they have been paid.
     GP-led health centres—often imposed on communities despite a lack of local demand as part of the costly drive to increase commercial involvement in primary care—are struggling to attract patients.
     Such examples of public money being wasted are particularly galling to those front-line workers who are being told to gear up for cuts.

Plurality of competing interests

Moreover, the purchaser-provider split has facilitated the diversion of NHS funding to a plurality of competing interests, and resulted in disincentives for doctors in primary and secondary care to work together to improve services for patients.
     The experience of other health systems indicates that the creation of a market results in a significant proportion of funding being absorbed by transaction costs.
     A recent survey by the Economist Intelligence Unit—hardly known for its hostility to business—found that less than a quarter of the UK population believes the NHS would be improved by a greater role for private providers.
     There must be a commitment to a health service that is publicly provided as well as publicly funded.
     It is time for politicians in all parties to rethink their policies on the role of the market in the NHS.

Home page > Publications > Unity > Politicians need to rethink the role of the private sector in the NHS

Baile > Foilseacháin > Unity > Politicians need to rethink the role of the private sector in the NHS