4 Sep 2011

DoH email exchange stokes NHS reform fears

Fears that the Government’s health reforms will mean the privatisation of the NHS are reinforced by an email exchange in which health officials consider private firms running up to 20 hospitals.

The health and social care bill, which is due to have its third reading in the Commons on 6 and 7 September, is the longest NHS bill in history.

It is a complex piece of legislation, but the overarching concern of many doctors and campaigns is that, in its current form, it will allow much of the £85bn NHS budget to pass directly into the pockets of private companies and their shareholders.

Concerns about the privatisation of the NHS were reinforced today when it emerged that emails between the Department of Health and an international consulting firm discussed the possibility of private companies taking on the running of up to 20 NHS hospitals.

‘500 million revenue’

In the emails, seen by the Observer newspaper, consultants McKinsey discuss bringing in overseas firms to run the hospitals in return for multi-million-pound contracts. Discussing the conditions to run the hospitals, one email states: “international players can do an initiative if 500 million revenue (is) on the table”.

Another email, to the head of provider development at the DoH, refers to “interest in new solution for 10-20 hospitals but starting from a mindset of one at a time with various political constraints”.

The emails were made public following a freedom of information request by Spinwatch, the non-profit investigations company.

‘Privatisation by stealth’

In response, the DoH issued a statement which said: “It is not unusual for the Department of Health to hold meetings with external organisations. Any decisions to involve outside organisations, such as the independent sector or Foundation Trusts, in running the management of NHS hospitals would be led by the NHS locally and in all cases NHS staff and assets would remain wholly owned by the NHS.”

Christina McAnea, head of health and the Unison union, said told Channel 4 News this was clearly “privatisation by stealth”. She said private companies would become involved with the NHS because they see a profit.

“Once you bring that in, you’ll actually be creaming off money from the NHS to pay shareholders’ dividends rather than putting that money into patient care.”

She continued: “If there is such a demand for such a fundamental change of the NHS that they’re bringing in with this legislation, where is the evidence to support this? Or is this purely being done on ideological grounds?”