The government is trying to revive its ailing independent sector treatment centre programme by ensuring that future contracts will be on the same terms as other NHS providers.
Health minister Mike O’Brien announced that, with many ISTC contracts coming to an end next year, each will be reviewed on a case-by-case basis.
In future, new ISTC services will be commissioned by the local PCT and the contracts will be paid under the same pricing arrangements as other NHS providers. Services will also be delivered under the terms and conditions of the standard NHS national contract for acute hospital services.
ISTCs started operating in October 2003 with the intention of increasing competition and thus standards in the NHS. But they were quickly criticised for being poorly integrated with local NHS services, under utilised and for benefiting from guaranteed funding.
Edinburgh University academics Allyson Pollock and Graham Kirkwood recently estimated that up to £927m could have been wasted on unused operations in ISTCs nationally. There are currently 25 fixed site ISTCs.
Health minister Mike O’Brien said: “In the past the independent sector has sometimes been guaranteed payments. In the future it is intended that contracts will operate at NHS tariff prices using the standard NHS contract for hospital services.
“Where independent sector providers offer value for money, innovation and high quality patient care, they have a role to play within the NHS. Independent Sector Treatment Centres have helped patients by increasing choice and capacity, and reducing waiting times.
“Greater local control and day-to-day management will ensure these services are better integrated in to the local health system and reflect local needs.”
The government claims that more than 1.7 million operations, diagnostic assessments and primary care consultations have been provided at ISTCs, and 96% of patients said their care was ‘excellent’ or ‘very good’.
Dr Hamish Meldrum, chairman of BMA council, commented: “It’s a shame it’s taken so long to get an acknowledgement that skewing the playing field in favour of private companies has been unfair and wasteful. Independent sector treatment centres have been able to cherry-pick easier cases, potentially destabilising existing services.
“Especially in the current climate, the NHS cannot afford poor value contracts, unnecessary competition, and duplication of services. We need much more of a whole-systems approach to the provision of healthcare, and we need the NHS to be run on the basis of co-operation collaboration, not competition.”
Tags: ISTCs, Privatisation
