The NHS could make savings and expand services by moving away from hospital care and tendering outcome-based contracts with non-NHS organisations, a report from LaingBuisson has said.
The NHS faces a £30bn gap by 2020/21 due to increased demands and flat funding, the Primary Care & Out Of Hospital Services UK Market Report warned.
The report noted many of the possible administrative and pay savings have already been made and less reliance on hospital based care was needed to make further savings.
The NHS would need key cost savings from larger contracts integrating services across health and social care with competitive tendering between the NHS, third sector and private companies.
Non-NHS providers (including private sector, voluntary sector, and other providers) have secured 45% of contracts awarded since April 2013.
Co-ordinating services including GP referrals, community health services such as physiotherapy and surgery were also highlighted as necessary for the NHS.
The report also noted these areas are where independent providers have had success bidding for contracts.
Contracts already at work within the NHS such as that in Cambridgeshire and Peterborough for older people's services were highlighted as examples of contractors integrating services better than the NHS could.
William Laing, author of the report, and CEO of LangBuisson, said: "Rather than criticising the tendering of NHS clinical services, we ought to be welcoming it - particularly the large scale, outcome-based ‘whole pathway' tenders which more and more pioneering commissioners are issuing.
Laing added: "It is too early to tell whether these contracts will deliver what they promise, but indications are encouraging that they will prove to be a ‘game changer' for the NHS."
Claire Ginnelly, head of healthcare at Premier Choice Group, said: "The problems within the NHS are well documented and we know that, ultimately, the issue is budget. It is interesting to read that the report is suggesting pathway contracts are required to reconfigure the NHS and deal with some of the chronic problems currently being faced.
"We have seen these introduced within the private insurance market over recent years by way of clinical pathways for mental health claims and musculoskeletal, or, more general open referral/guided option pathways.
"The private insurance market faces its own issues with regards to costs. All insurers are looking at ways of managing the claims process more efficiently so the customer still gets the right care at the right time but also at the right price.
Ginnelly added: "The findings of this report reinforce the work which has already been done by a lot of the insurers and, hopefully, innovation within this market place will continue and gather pace. The intermediary also has a role to play.
"We need to consult with our clients and communicate changes within the market place so we are educating the end user effectively. The current problems are not necessarily unique to the NHS and we all need to work together and learn from each other to achieve what is in everyone's interest."
