POGS It was Mrs Thatcher’s government, in the 1990 NHS and Community Care Act, that introduced the “internal market”. Contracting-out followed – leading to increased fragmentation of services and greater bureaucracy. Under John Major, administration costs rose from 3% to the current 15%.
Cleaners, maintenance, catering, etc., etc. are now contracted out – with costs cut to the bone and staff pay and pensions reduced. There was a huge increase in hospital infections during 1993 and 1997.
The private equity firms that own these healthcare companies don’t really care what they invest in – security, arms, prisons - you name it they’ll invest in it – so long as there’s a tidy profit involved – and if that profit diminishes or they think they can get a better yield elsewhere they’ll just sell up and go. Then the whole bidding process – and the costs involved – has to start all over again. There is great difficulty in obtaining data regarding costs, contractual terms or performance because private companies can refuse to give information on the grounds of “commercial confidentiality”.
Three Camden GP surgeries (4,500 patients) were awarded to United Health, an American healthcare giant. Then United Health sold shares in the three surgeries to another provider in 2011. In 2012 one of the surgeries was closed and the other two were put out to tender in 2013.
Serco’s out-of-hours service for Cornwall introduced a new IT system to reduce costs. They replaced skilled clinicians with call handlers that had no medical training and who read from a computer-generated script, leading to a fourfold increase in ambulance call-outs.
Thousands of NHS patients did not receive vital medicines on times because of problems at Healthcare at Home (owned by Vitrivion Partners, a private equity firm), the company contracted to deliver drugs to patients in their homes. Healthcare at Home took over around 3,000 patients from Medco Health Solutions which pulled out of the UK market three years after entering it.
BMI Mount Alvernia Hospital Surrey failed 8 out of 9 care standards on inspection when “life threatening failures” were found at the hospital. These included children operated on without parental consent, nerve blocks administered on the wrong side of the body before surgery and resuscitation teams failing to respond in emergencies.
The NHS had to take over the running of a centre run by Clinicenta after three people died following routine surgery. Clinicenta was paid £53m. for termination of the contract.
Vanguard Healthcare has recently been reported as having been responsible for cataract operations that have left dozens of people with impaired eyesight. Their services were discontinued after three days.
These are just a handful of examples of the lack of accountability and continuity that increasing private provision brings. The NHS also makes mistakes but it carries out every sort of medical procedure and treatment – including dealing with emergencies and chronic conditions – private providers are doing the easier, “routine” procedures because they are more profitable.