Government denies U-turn on private sector

The Government has announced that it will scrap plans for six clinics that were to provide privately run services for the NHS. One clinic which is already up and running will also be closed. This is likely to result in the Government having to reimburse bid costs and compensation worth millions of pounds. Wave two has cost £84 m on legal fees and procurement costs, although some of this has been spent on schemes that have been implemented. Dr Jonathan Fielden, chairman of the BMA’s consultants committee described the waste of money as a “crying shame”.

Health Secretary Alan Johnson has already said that two contracts with Atos Origin to provide diagnostic services for the NHS, will no longer go ahead and Care UK’s mobile diagnostic service, which is already in operation in the West Midlands, will now be closed due to “unacceptably low rates of use.”

Alan Johnson denied a change in policy and said the Government will continue to use the independent sector with 10 new private clinics going ahead. Among these are three new independent sector schemes with a combined value of approximately £200 m which are expected to provide 19,600 diagnostic scans and 123,000 kidney dialysis sessions per year.

“There is no doubt the independent sector has helped improve health services for patients, helping speed up treatments and galvanise the NHS to raise its game,” he commented.

However, he also revealed that private sector procurement will no longer by led by Whitehall but arranged on a local level instead. In addition, the Health Secretary set out details of how the Department will ensure there is a level playing field for all NHS providers in the future.

These include:

• A new forum for independent sector providers to advise the Department on local procurement practice.

• Extending the NHS indemnity cover (the Clinical Negligence Scheme for Trusts) to non-NHS providers of NHS services.

• Plans to promote patient choice and make patients more aware that they can be seen by private sector providers free of charge if they choose.

• New guidance to the NHS about how it should work with the private and voluntary sector.

• A continuing role for the independent sector in helping to improve primary care services and providing additional GP surgeries.

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