All companies and organisations contracting for the NHS should open their accounts to public scrutiny to encourage financial transparency and ensure the NHS is getting value for money, claims a leading think tank.
With costs in secondary care rising at more than double the rate of primary care, the NHS Alliance claims that it would allow commissioners to establish whether acute hospital providers are delivering more services or simply are being paid more as a result of payment by results arrangements.
Dr Michael Dixon, chairman of the NHS Alliance, said: “The Blair administration abolished old fashioned prejudices between public and private and concentrated on support of whatever option is best for patients.
“Equally, the issues over MPs expenses and bankers bonuses have changed the scene and the public want to know who is being paid for what - in public services that should be their right, especially at a time when we are looking at public ownership of banks and private ownership of some frontline NHS services.”
In terms of tenders, the NHS Alliance believes that providers submitting their bids should abide by the same rule and should also be required to demonstrate how they will deliver the service within the budget put forward in their submissions. This would help commissioners to establish if the proposed tender is cutting too many corners or is based on unreasonable financial assumptions.
Dr Dixon added: “It is not unusual for bidders, after they are awarded the contract, to ask the commissioner for more money when they realise they cannot provide the service at the cost they tendered for. This is hardly fair to bona fide competitors. We need a system that exposes bidders who are loss leading and using other tactics to gain market entry.”
Read a guide to NHS finance.
Tags: Commissioning, Privatisation
