Private firms awarded a third of NHS contracts

clock • 2 min read

Private sector providers have secured a third of the contracts to provide NHS clinical services since the Health and Social Care Act began in April 2013, an investigation by The British Medical Journal (The BMJ) has found.

The BMJ analysed 3494 contracts awarded between April 2013 and August 2014 disclosed via FOI requests - finding non-NHS providers (including private sector, voluntary sector, and other providers) have secured 45% of contracts awarded since April 2013.

The analysis of the data supplied by clinical commissioning groups (CCGs) showed that 1149 contracts (33% of the total) were awarded to private sector providers, 335 (10%) to voluntary and social enterprise sector providers, and 100 (3%) to other types of provider, such as joint ventures or local authorities.

A total of 1910 contracts (55%) were awarded to NHS providers. This category included NHS hospitals, community and mental health providers, and general practices.

Of the contracts that were analysed, 195 (6%) were awarded by competitive tender. Private sector providers were most successful at bidding for these contracts, winning 41% of these contracts. 

Dr Mark Porter, chair of the British Medical Association said: "These figures show the extent of creeping privatisation in the NHS since the Health and Social Care Act was introduced. The government flatly denied the Act would lead to more privatisation, but it has done exactly that.

"Enforcing competition in the NHS has not only led to services being fragmented, making the delivery of high-quality, joined-up care more difficult, but it has also diverted vital funding away from front-line services to costly, complicated tendering processes.

"What's worse is that there isn't even a level playing field as private firms often have an unfair advantage over smaller, less well-resourced competitors, especially those from the NHS and social enterprises. To undo this damage we need an honest and frank debate about how we can put right what has gone wrong without the need for another unnecessary and costly top-down reorganisation."

Meanwhile, David Hare chief executive of NHS Partners Network described the value of private contracts as a "tiny fraction."

He said:"The BMJ's figures suggest that a significant number of contracts have been awarded to private sector providers since April 2013, the total value of those contracts is a tiny fraction of those secured by publicly-owned providers. Between 2012/13 and 2013/14 there was a 0.4 per cent increase in the amount of NHS work conducted in the independent sector, with less than six per cent of services delivered by private organisations.

He said that patient choice was about being able to choose the best provider.

He added: "What matters to patients is being able to choose the best available provider and to ensure that local healthcare provision is good quality. With lower than average wait times for treatment, excellent levels of patient satisfaction and strong evidence on quality, the independent sector plays a small but important role in ensuring that the NHS meets the needs of all patients."

 

More on PMI

General and Medical Healthcare joins amii
PMI

General and Medical Healthcare joins amii

PMI provider

Jaskeet Briah
clock 04 November 2024 • 1 min read
Benenden Health names Tom Woolgrove as CEO
PMI

Benenden Health names Tom Woolgrove as CEO

Former CII president

Jaskeet Briah
clock 29 October 2024 • 1 min read
Societal ageing and climate change adding to healthcare challenges
PMI

Societal ageing and climate change adding to healthcare challenges

AXA research shows

Jaskeet Briah
clock 14 October 2024 • 2 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read