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Vincent Brogan

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Private Healthcare and the 'New' NHS

Posted: 26/09/2012 00:00

One important question overshadows healthcare reform. Is privatisation good or bad for the NHS?

The white paper, with this question part of a wider debate on a reform package announced by the new coalition government in 2010, suggested the NHS as a healthcare model was broke.

What is wrong with our health service that such a radical overhaul is needed? Is it that broke? News another seriously ill patient has been transferred from a private to a public hospital for treatment says something about standards of care in the NHS.

The remit of a good healthcare system is easy to define. It should be universal, meaning it covers everybody. lt should be affordable. It should be egalitarian, ones ability to pay and state of health not precluding you from care you need. It must be accessible, provide quality treatment and be cost effective.

On which of these parameters has the NHS failed?

Our health service consistently scores at or near the top of international studies on measures of healthcare delivery. It is probably the most cost effective system in the world for the quality and breadth of care it provides.

We spend far less (10% of GDP) on healthcare than does the US (17%+) which epitomises the free-market model that has privatisation and competition at it's core, and where tens of millions have no cover at all because they can't afford it..

We spend less than similarly placed European neighbours like Germany (12%) where tightly managed private stakeholders have a minority role in a Government controlled, quality, universal healthcare system.

But the NHS has one distinct advantage. It is a managed, democratic, single payer enterprise that puts people, not profit, first. And those who use and deliver it know this.

The NHS excels because it has not endured the excesses of the US private system where over specialisation at the expense of general practice, high dependence on technology, high administration costs, vested interests pushing separate agendas and the profit motive have all fostered a model which is more than twice as expensive as the UK's to run.

These excesses and inequities have been largely avoided in the UK because patients trusted doctors to make decisions. GPs and specialists worked well together without the supposed benefit of competition that evidence has shown increases rather than decreases costs.

Far from creating a supposed monopoly in healthcare provision this simple equation facilitated it's more effective delivery without compromising on quality.

Doctors, properly and well rewarded by the State had no incentive to treat or not to treat. They could be trusted to put patients first.

This balance, based on trust, may be challenged when GPs under a new commissioning system take control of budgets and 'incentives ' arise for referring or not referring patients to certain providers. Strains will also emerge as private suppliers compete for scarce specialist skills.

The free market healthcare model works well for some and provides quality care, but only when they can afford it. It cherry picks the healthiest, tends to ignore the poorest, the elderly and the chronically ill. It prefers clean treatments it can easily and profitably provide.

It discourages those, like mental health or chronic care patients that can be difficult to budget for. And it has been shown to be far more costly to administer than a single-payer system like the NHS.

Words like choice and information are also bandied around as justification for more competition and privatisation. They are increasingly creeping into the NHS lexicon as well, and rightfully so. But as Michael Moore's film Sicko graphically illustrates, private providers give you a choice of sorts, at a price with strings attached.

The NHS's traditional role as 'preferred' provider, which doctors first turned to when their patients needed tests, surgery, investigations or treatment, helped it develop a broad range of services and facilitated its growth as one of the most viable healthcare models in the world.

It is an integrated, not a fragmented, healthcare system. It relies on cooperation, not competition. It is highly cost effective and it is guaranteed.

Introduce excess, external competition and this model falls apart. Competition can lead to cheaper services for some procedures or services, such as providing cataract surgery or elective hip or knee operations which end on Friday afternoon.

But running emergency theatres and critical care units for accident victims on Saturday night is never going to be profitable, which is why the integrated healthcare model is preferable. It balances overall costs and guarantees continuity of service.

Health service reform is essential and ongoing but it should not be cloaked in politics. It must be based on evidence. And the evidence shows the integrated, co-operative NHS model is cheaper and works as well or better than nearly every major healthcare system.

There is of course much on the 2012 Health bill which is welcome. Productivity needs to match substantial spending increases over the past decade. Further integrating social care with medical care is a must and extra investment in primary care is essential.

But the NHS doesn't need more private sector help to achieve these goals.

The private sector wants good bits of the NHS however. If these are handed out on ideological grounds then the basic fabric of one of the world's best healthcare systems will be permanently, needlessly and seriously undermined. It could spell the demise of the NHS as we know it, forcing far more people to take out health insurance they cannot afford.

The private sector has a role to play within our health service, but only at the fringe. And that is where it must remain.

 

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One important question overshadows healthcare reform. Is privatisation good or bad for the NHS? The white paper, with this question part of a wider debate on a reform package announced by the new c...
One important question overshadows healthcare reform. Is privatisation good or bad for the NHS? The white paper, with this question part of a wider debate on a reform package announced by the new c...
 
 
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12:54 PM on 10/01/2012
Our Nhs is perfectly alright the problem we have is everybody in the world wants to and is using it. We go into other countries we have to pay what I do not understand is why ours seems to be free to everyone that enters this country whether legal or illegal and people wonder why this country is in debt
Kraptonfactor
They're coming to take me away ha ha, hee hee, ho
12:28 PM on 09/27/2012
There are a few things wecould do to get the NHS back on it's feet. Make all visitors from outside the EU have private medical insurance before they are allowed into the UK. We can't treat every health tourist who walks through the doors of our hospitals.
Stop the waste. I have worked in the NHS and the private sector and the sheer waste that goes on is unbelievable. In private hospitals every thing you use is intemised on your charge sheet, even down to an alcohol swab. I have seen people stealing all sorts of things from NHS hospitals from coffee, dressings, through to toilet rolls. More accurate auditing is needed.
Lastly, get rid of the managers, they are a waste of space. I have seen bed managers (3 of them) checking matresses, one holds the clipboard while the other two run their hands over the matresses. It was always part of a nurses job to report any damages to matresses to the ward sister who would put in a requisition form for a new one, a five minute job between them. Let's get rid of all the useless people and employ more front line staff.
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redsquad
Shootin' from the lip
11:11 AM on 09/27/2012
Tories are already selling off care contracts to private companies in exchange for donations... If you're not outraged by that then you're probaly the sort more worried about "kate's dress"...
01:20 AM on 09/27/2012
Conservative politicians do not support the NHS for two reasons
1. It was introduced by a Labour government.
2. A successful NHS does not fit in with their privatisation agenda of public services.
11:10 PM on 09/26/2012
I have worked in the NHS for the past 30 years and believe me there is a lot wrong with the NHS. You people here grumble and let the politiciains spin you a load of yarn. I grew up in the USA and I am telling you if you do not stop the rot of the NHS. Then you get all that is coming to you... I know what I would choose.The issue is trying to make it compete with it's self crazy really when then money comes from the people it serves. I was proud of the NHS but no longer really due to utter decline and mis management that is taking place. Only people happy theses days in the NHS is the mangers patients don't count anymore nor do they have any say really. As far as the staff go where are they theses days.....
10:33 AM on 09/27/2012
I worked in the NHS 39 years. I agree with every word. After what happened to the hospital where I worked for most of that time I wouldn't trust Labour neither.
09:30 PM on 09/26/2012
The reason for all privatisation of publicly owned services in the UK is simply that the establishment can now get it's hands on public money legally to fill out their bank accounts.
09:10 PM on 09/26/2012
All very obvious privatisation does not work..examples, Railways, Gas/Electricity/ Water etc...just a con for the public to pay more, and tax payers money syphoned off into private bank accounts, with lifetime jobs as directors to the MP's who instigated it.
And do not forget it was the UK tax payers money that set up these public companies in the first place.
08:40 PM on 09/26/2012
Answer a Question for me. We have to pay for our hospital bills abroad now and claim it when we get back home does that apply or happen for tourist that come here or is that another bill we are paying.
We have to pay to use roads abroad why do they not pay to use ours
09:12 PM on 09/26/2012
Your right, the UK is the laughing stock of the EU. We give they take, end of story.
05:42 PM on 09/26/2012
If it is broke its because of the goverment filtering of money, like they do with the road tax.They get enough in and where does it go!!!! not to the nhs, or the road tax to the roads. Think about it.
04:30 PM on 09/26/2012
What's wrong with the NHS. Well it is quite efficient financially when compared to other countries health services. But it is begining to creak with the strain of cuts. Our town ambulance service is being cut from three down to one unit despite our growing and aging population. The Ambulance staff complain about the roadworthiness of the vehicles and the quality of the kit.
As we move to a GP fund holder health service you will find doctors will send you to the cheaper hospital, not the nearest for your treatment. You may find your relatives will have to travel miles to visit you.
You will find the NHS driven more by accountants than clinical need.
The NHS is not equal to all. Treatment funding depends on where you live and some treatments are denied because of costs. If you have money you can often buy treatments privately which involves NHS facilities being used.
Given that the NHS spends 10% of GDP, which compared to most developed countries is excellent value, I feel this goverment is trying to get too much from the NHS for too little financial imput.
Sure, money can be saved in any big organisation but should be done with needs in mind, not hacking and slashing in blind panic.
04:05 PM on 09/26/2012
I have great respect for the NHS - as someone who is married to an epileptic who needs lots of care, they are 2nd to none. They are not perfect - but I do know for speaking to friends in other countries that the care my husband gets would be totally out of his reach in their countries. I absolutely agree that the NHS needs improvement - but please don't ever get rid of it.
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Vincent Brogan
08:08 PM on 09/26/2012
Agree, Detor. Compared to all developed countries the NHS, despite it's problems, has few rivals for what it costs. Many countries have no structured healthcare systems at all.
03:02 PM on 09/26/2012
Trust the Conservatives to ensure that the NHS provides a 1st class service for the vast majority of the UK population (The Plebs).

Thats a sick joke!
whochi
Liberals think 2 + 2 = Bush
02:38 PM on 09/26/2012
We spend far less (10% of GDP) on healthcare than does the US (17%+) which epitomises the free-market model that has privatisation and competition at it's core, and where tens of millions have no cover at all because they can't afford it..

Lies or misreprestation of facts.

There is no free market health insurance in the United States. You can go across State lines and buy just about any product or service you wish to purchase because those products and services are mostly governed by free market enterprise; not so with health care. In the majority of cases, you cannot purchase health care across State lines. And with the coming Obamacare while on paper there will be 'more choices' through these silly 'exchanges', the cost to subsidize the deadbeats who will have others pay for their insurance will lead to drastic increases in premiums (already up by thousands per year) and a rationing of health care.
10:52 AM on 09/26/2012
Well said. Unfortunately, we're further down the line than most people realised and universal healthcare will end in April 2013. Even Virgin are already charging for physiotherapy services if you need more than five sessions. A sad day has already come and gone, the politicians have benefited financially from their involvement with private healthcare companies (4 Tory donors were given Hinchingbrooke Hospital, for example, after paying £1.4m to the party), and Labour won't turn it around because they're also involved.
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John Nash
10:01 AM on 09/26/2012
there is no profit it not reforming it, would be my guess