Tagged: East Staffordshire

Far More NHS Contracts Going To Private Firms Than Ministers Admit, Figures Show

Profit-driven firms have been winning far more NHS contracts than ministers admit and privatisation has increased significantly under the coalition government, the latest evidence shows.

Two new sets of figures, detailing who is being awarded contracts to provide NHS clinical services, both challenge the government’s claim that only 6% of the service’s budget goes to private firms.

Contracts monitored by the NHS Support Federation campaign group show that private firms won £3.54bn of £9.628bn worth of deals awarded in England last year – a win rate of 36.8%.

And responses from GP-led clinical commissioning groups (CCGs) to a Labour freedom of information request reveal that private firms have been winning 40% of contracts CCGs have put out to tender, worth a total of £2.3bn, only slightly fewer than the 41% awarded to NHS bodies.

Labour also claim that NHS patients have had to endure longer waits for treatment as NHS hospitals have increasingly maximised their income from private patients, the number of which has gone up by as much as 58% since 2010. The NHS will end up as “a two-tier service”, with those paying privately being prioritised over other patients, unless action is taken to reverse the trend, the party claims.

Andy Burnham, the shadow health secretary, said the figures it had collated “demolish [David] Cameron’s claim that there’s only been a modest increase in privatisation on his watch. The truth is there has been a sharp increase and the public has never been asked whether they want the NHS to go in this direction.”

Labour will on Saturday try to again use health to its advantage in the election campaign by pledging to reinstate the 2% limit of total income that NHS hospitals can earn by treating patients privately.

Ministers claim that the proportion of the NHS’s £100bn-plus budget going to private firms has risen from 4% under the previous Labour government to 6% during the coalition’s time in office.

This month, the health secretary, Jeremy Hunt, accused Labour of trying to “scare people about privatisation that isn’t happening”.

But Labour’s research found that of 5,071 contracts awarded by CCGs 2,098 (41%) went to NHS bodies and 2,024 (40%) went to private healthcare firms, such as Care UK. The GP-led groups took control of £69.2bn of NHS funding in 2013.

David Cameron and Jeremy Hunt have not been honest with working people about the scale and pace of privatisation on their watch. They’ve tried to play it down but these figures show they simply cannot be trusted with the NHS,” said Burnham. “It is shocking to see private companies winning just as many contracts as the NHS, and some with links to the Tory Party too.”

In 2009-10, Labour’s last year in power, 129 NHS foundation trust hospitals earned £224m in total from private patient income (PPI). By 2013-14 that had grown to 142 trusts sharing £389m between them.

The coalition lifted the cap on how much trusts could earn from PPI from 2% to 49% as part of its unpopular shakeup of the English NHS under the Health and Social Care Act 2012.

The £3.5bn worth of contracts won by private firms is five times the £681m the NHS Support Federation identified the year before. It also represents a huge increase on the £205m of contracts awarded in 2010-11, the coalition’s first year.

Of 13 contracts awarded last year that were worth at least £100m, six went to private firms, another five to private consortiums and just two to NHS providers bidding on their own. For example, Virgin Care got a £280m deal to coordinate care for long-term illness and care of elderly people in East Staffordshire.

The public need clear sight of what’s happening to the NHS ahead of 7 May. The government cannot go on denying NHS privatisation. If we stay on the same path the NHS will become dominated by big business and there is a real danger that it will not survive,” said Paul Evans, director of the NHS Support Federation, which is funded by individuals, charities and unions.

“This is proof positive of a steep escalation in the private sector’s hold over the NHS. The mammoth NHS reforms opened up the NHS to the market and business. There is no current limit on how far their involvement can go,” he added.

The Tories rejected Labour’s claims about growing privatisation and dismissed returning the private patient cap to 2%.

A spokesman said: “This is a gimmick from Labour. Official figures show that outsourcing accounts for just 6p in each NHS pound, and private patient income is actually falling as a proportion of hospital budgets.

“By fixating on privatisation that independent experts and [NHS England boss] Simon Stevens say is a myth, Labour betray patients because the real debate should be good care against poor and on their watch, terrible events at Mid Staffs went ignored for four years.”

Source – The Guardian, 24 April 2015

Emergency NHS cash diverted south with most areas of North-East receiving just 0.24% of £2bn fund

Emergency cash for the troubled NHS has been diverted away from the region to areas mainly in the South, a new analysis shows.

Health chiefs in the North-East and North Yorkshire have been handed tiny increases in their budgets from the £2bn fund – most receiving just 0.24 per cent more.

In stark contrast, other areas – mainly in London and the South-East – have been given funding boosts of more than 3.5 per cent, for the 2015-16 financial year.

NHS England argues the extra cash is going to areas which are currently underfunded and which have “the greatest health needs, where the population is growing rapidly”.

But the decision has been fiercely criticised by Nick Brown, Labour MP for Newcastle East, who campaigned against a previous attempt to shift health cash from North to South.

Mr Brown said:

“This is highly political. Extra money is being found for Tory-voting parts of the country at the expense of the rest of us. The allocation formulas have been twisted to bring this outcome about.

“Those who die too young are the losers. The big winners are the geographic areas where people enjoy a long-lived, healthy and comfortable retirement.”

Tom Blenkinsop, the Middlesbrough South and East Cleveland MP, said:

“This is yet another clear sign that this Government is consciously and deliberately redistributing funds from our area to Tory political priorities in the south of the country.”

The Northern Echo:

The issue of CCG funding has also drawn criticism from local Conservative MPs, including Vale of York’s Julian Sturdy who told ministers of a “postcode lottery” in a debate last week, saying: “Why does Vale of York CCG, in particular, receive such a poor allocation?

 The analysis, by the Health Service Journal (HSJ), found the biggest increases had gone to clinical commissioning groups (CCGs) in areas with Conservative and, to a lesser extent, Liberal Democrat MPs.

There are 53 CCGs receiving rises of between three and four per cent – covering areas where no fewer than 85 per cent of MPs are from the two Coalition parties.

Furthermore, some – unnamed – CCGs have been forced to revise their plans from April because they are now receiving less money than expected, the HSJ said.

The allocations – slipped out by NHS England late on the Friday before Christmas – divide up the £1.1bn of the £2bn which has been given to CCGs, which ‘buy’ treatments.

Announcing the £2bn injection in November, amid growing talk of an NHS “crisis”, George Osborne said it would “support the day-to-day work of our incredible nurses and doctors”.

But 11 of the 14 CCGs in this region will receive just 0.24 per cent extra, worth just £400,000 to Darlington, for example – and none will get more than 1.99 per cent.

Ten CCGs are gaining 3.7 per cent or more, including in Windsor, Ascot and Maidenhead, Bedfordshire, Bromley, in Kent, and in Slough.

The list is topped by East Staffordshire, which gets a 4.28 per cent increase – an extra £5.8m, for 2015-16.

The row has echoes of the controversy in both 2012 and 2013, when NHS England first attempted a big shift in spending from poorer areas to those with more pensioners.

It was forced to back down after protests that the “fair shares formula” would slash up to £170m of funding from CCGs in the North-East and North Yorkshire

This time, every area is receiving a rise of at least 1.7 per cent from April, but half the extra £1.1bn will go to just 54 of the 211 CCGs.

Announcing its decision, NHS England said:

“Every CCG will get real terms budget increase.

“More of the extra funding for local health services is being used to more rapidly increase NHS budgets for those parts of the country with the greatest health needs, where the population is growing rapidly, and where services are under greatest pressure.”

NHS England is independent of the Department of Health, which means its spending decisions are no longer announced to parliament, nor scrutinised by MPs.

Source –  Northern Echo, 13 Jan 2015