Posts Tagged ‘Competition’

“Public sector workers need discipline and fear”

The Guardian - 2nd August 2011 10:08 am

Coalition’s policy chief on reforms believes excellence would be achieved through fear of losing jobs and real discipline.

Oliver Letwin, the coalition’s policy minister, has revealed the government’s determination to instil “fear” among those working in the public sector, who he claimed had failed for the past 20 years to improve their productivity.

Letwin, architect of the coalition’s plans to reform public services, told a meeting at the offices of a leading consultancy firm that the public sector had atrophied over the past two decades.

In controversial comments angering teachers, nurses and doctors, he warned that it was only through “some real discipline and some fear” of job losses that excellence would be achieved in the public sector.

Letwin added that some of those running schools and hospitals would not survive the process and that it was an “inevitable and intended” consequence of government policy.

Read more at The Guardian.

Hospitals should give patients more choice

By Mike Broad - 28th July 2011 12:24 pm

Many patients are not being given enough choice by their local NHS trust when it comes to routine elective care, a review finds.

The review, by the Cooperation and Competition Panel, shows that while some commissioners are successfully balancing the many requirements on them and still delivering patient choice, others are restricting choice excessively.

The CCP warns that unless the significant variation in the effective delivery of choice is addressed there is a serious risk that the expected benefits of patient choice - both to patients and taxpayers - will not be realised to their full potential.

Patients have had the right to choose their provider of acute elective care since 2008, under the NHS Constitution and the Principles and Rules of Cooperation and Competition.

CCP chair, Lord Carter of Coles, said: “Commissioners have a difficult job in the current financial climate, but patients’ rights are often being restricted without a valid and visible reason. Crucially, it is the lack of transparency that surrounds certain restrictions on patient choice that is of real concern.”

The review makes several recommendations to the Department of Health aimed at addressing unjustified restrictions and improving the implementation of patient choice.

These include commissioners being required to publish annually details of any restriction on patient choice they have agreed to adopt, the underlying rationale for the restriction and an analysis of its impact.

The CCP also recommends that future commissioners be required to demonstrate an understanding of the rules concerning patient choice and competition, and a commitment to comply with their obligations under these rules.

Furthermore, commissioners - when imposing waiting time requirements on providers - publish prominently on their website clear information about the minimum waiting time imposed by the PCT on each provider; and that commissioners be required to ensure that Referral Management Centres do not unduly distort patient choice.

As of June 2010, there were more than 250 NHS and independent sector providers of acute elective care to NHS patients worth approximately £400 million per annum and treating over 220,000 NHS patients a year.

Katherine Murphy, chief executive of the Patients Association, said: “It is outrageous that some primary care trusts are imposing minimum waiting times. The suggestion that it could save money because patients will remove themselves from the list by going private or dying is a callous and cynical manipulation of people’s lives and should not be tolerated.”

Read the full review.

Lansley opens up NHS services to competition

By Mike Broad - 20th July 2011 4:28 pm

Patients will be offered greater choice following the opening up of more than £1bn of NHS services to competition in England, the government has claimed.

From April 2012, eight NHS areas, including musculoskeletal services for back pain, adult hearing services in the community, wheelchair services for children, and primary care psychological therapies for adults, will be open for “competition on quality not price”.

When patients are referred by their GP, they will be able to choose from a range of qualified providers - from the private, public or voluntary sector - who meet NHS quality, prices and contracts.

To date, choice has only been available in non-urgent hospital care, but the guidance sets out how it will be extended to community and mental health services, and has prompted claims that the NHS is being privatised.

The Future Forum recommended a phased approach to introducing competition, which the government has adopted. If successful, the “any qualified provider” policy would from 2013 see non-NHS bodies allowed to deliver more complicated clinical services in maternity and ‘home chemotherapy’.

The BMA, however, raised doubts over how much meaningful choice can be offered. Dr Hamish Meldrum, chairman of BMA council, said: “We support greater choice for patients, although in an NHS with finite resources it will always be limited. What we would question is the assumption that increasing competition necessarily means improved choice.

“When competition results in market failure in the NHS, the ultimate consequence is the closure of services, and the restriction of choice for the patients who would have wished to use them.”

Every area across England will be expected to offer more choice in a minimum of three services by September 2012 - either from the recommended list or for another community or mental health service that is a high local priority.

Health secretary Andrew Lansley said: “This is a big day for patients - real choice over how and where they are treated is becoming a reality. There is often confusion about these policies - a mistaken idea that competition is there for the sake of it, or to increase the independent sector’s role in the NHS.

“But let’s look at what this is really about: it’s about children getting wheelchairs more quickly. It’s about people with mental health conditions choosing to receive their care somewhere closer to home. It’s about older people being able to choose a service that will come to their home…It’s about real choices for people over their care, leading to better results.”

There eight services that have been recommended as the most suitable are:

Services for back and neck pain

Adult hearing services in the community

Continence services (adults and children)

Diagnostic tests closer to home

Wheelchair services (children)

Podiatry services

Leg ulcer and wound healing

Talking therapies (primary care psychological therapies, adults)

Nick Clegg to oppose NHS competition regulator

BBC Health - 18th May 2011 9:44 am

Deputy prime minister Nick Clegg will oppose the idea of a regulator promoting competition as part of NHS reforms.

It places him in opposition to Health Secretary Andrew Lansley who wants more competition to drive down prices.

Addressing Lib Dem MPs and peers, Clegg also criticised David Cameron for declaring his love for the NHS while taking advice from people talking up the potential for private profits.

The regulator Monitor already scrutinises foundation trust eligibility and finances.

Clegg’s intervention marks an escalation in negotiations with his Conservative partners over the Health and Social Care Bill which is currently on hold.

Read more at BBC Health.

Don’t be a “slave to competition”, NHS told

BBC Health - 5th May 2011 9:23 am

The government must not become a “slave to competition” over the NHS, the ex-head of the health regulator says.

Anna Walker said competition had an important role to play in making the health service more efficient.

But Walker, now head of the Office of Rail Regulation, said ministers had to learn from other sectors - and limit the scope of private involvement.

It came as private health firms hit out at what they said was scaremongering about the changes in England.

Under plans put forward by the coalition government, the NHS is to be opened up further to competition from private sector firms.

Read more at BBC Health.

PCTs accused of bias against private sector

BBC Health - 29th March 2011 11:54 am

Evidence is emerging that some PCTs are rebelling against plans to create greater competition in the NHS.

Many English trusts are introducing steps that make it harder for patients to opt to have NHS care done by private hospitals. The behaviour of nearly half of local NHS management bodies is now being looked at by a government inquiry.

NHS patients needing non-emergency operations, such as hip and knee replacements, are already able to be treated by private hospitals that have agreements in place to carry out the care at NHS cost. At the moment, only 3.5% of operations are done this way, but under the government’s shake-up of the health service the number is set to increase.

However, managers working for PCTs have started trying to impose restrictions that channel patients away from private hospitals.

These include reductions in the range of treatments that private hospitals can offer NHS patients, caps on the number of people they can treat and promising NHS hospitals set numbers of patients.

Another tactic is to introduce minimum waiting times, which has the effect of slowing the flow of patients and cancels out one of the key benefits of being seen by the private sector - quicker treatment.

The issue is being looked into by the Co-operation and Competition Panel on behalf of the Department of Health. Its interim findings suggested as many as 70 of the 151 PCTs are employing such tactics.

Read more at BBC Health.

The case for total opposition to the Health Bill

By Clive Peedell, consultant oncologist and co-chair of NHSCA - 10th March 2011 4:55 pm

Recent surveys of the profession by the King’s Fund, the RCGP and the BMA have all shown that the majority of doctors do not support the reforms and do not think they will improve patient care.

Following last week’s publication of the Ipsos MORI survey of BMA members in England, the chairman of BMA council, Dr Hamish Meldrum told BMA members that: “There is a central plank of policy that concerns you the most: competition. Almost nine-out-of-ten doctors believe that increased competition brought about by allowing ‘any willing provider’ to tender for services, together with handing enforcing powers to the economic regulator, Monitor, will fragment care.

“The Secretary of State has repeatedly said he wants to listen to doctors. Doctors are telling him that whole rafts of these proposals will either not achieve the intended benefit to patients, or will be harmful. He particularly needs to act on the concerns about competition.”

However, competition between a plurality of ‘any willing providers’ is the fundamental policy underpinning Mr Lansley’s market driven reforms. In fact, competition is the lifeblood of any market system. Lansley himself has stated that: “The first guiding principle is this: maximise competition. There are, of course, potential benefits from privatisation in terms of access to capital, flexibility, and creating new markets; but private sector ownership is a secondary consideration to competition, which is the primary objective.”

Hence many of the other policies in the Bill are designed to promote competition. Thus he is empowering Monitor to be “a strong, pro-competitive regulator”, which will be “geared to maximising competition or enforcing contestability where competition is absent or limited”.

Monitor will also have concurrent powers with the Office of Fair Trading to apply competition law to prevent anti-competitive behaviour. In addition, the NHS Commissioning Board will also have a duty to promote competition.

Crucially, one of the key reasons for transferring £80bn of the NHS budget to GP consortia is to promote competition within the NHS by getting the money as close as possible to the patient (consumer). Mr Lansley explained this in a speech in 2005: “The statutory formula should make clear that choice should be exercised by patients, or as close to the patient as possible, thereby maximising the number of purchasers and enhancing the prospects of competition, innovation and responsiveness to patients.”

Since competition is so fundamental to Lansley’s market based reform agenda, any successful amendments to the Bill that removed the competition element would essentially render the Bill null and void in terms of its main aim of being the blueprint for a market-based healthcare system. However, this is precisely what the BMA are trying to achieve in their attempts to amend the following clauses: Clause 63 - by removing powers to impose requirements to promote competition; Clause 52 - by removing Monitor’s duty to promote competition; and Clause 60 - by removing Monitor’s concurrent powers with the Office of Fair Trading to apply the Competition Act 1998, following the model used in various utility industries.

Although the BMA is still critically engaging with the government and has not joined in with calls for total opposition to the Bill, the BMA is actually proposing anti-competition amendments, which if accepted, would cause the Bill to fall and almost certainly signal the end of this coalition government. It is precisely because of this risk that there is no realistic prospect that these amendments will be accepted in any shape or form.

Since the Bill is very complex and not well understood, the public, the media and the profession have not realised the significance of the BMA’s proposed amendments, which have fallen under the radar. Thus there is too little public attention and opposition at present and the Bill is therefore very likely to become enacted relatively unscathed. This will signal the demise of the English NHS as a publicly funded, publicly provided and publicly accountable universal healthcare system.

This raises the stakes for next week’s BMA Special Representative Meeting (SRM), which is vital because it will offer the best and possibly the only opportunity to save the NHS from Lansley’s radical market reforms. Over 500 motions have been submitted. Crucially, these include motions calling for complete opposition to the Bill, as well as a vote in no confidence in Mr Andrew Lansley.

If these motions are passed, then this will send out a very strong message to the media and the public that grassroots doctors have mandated their leadership to oppose the Bill in its entirety. Since empowerment of doctors was supposed to be one of the key selling points of Lansley’s proposals, outright rejection of the Bill would carry enormous weight.

I believe that the public are the key to saving the NHS, but the legislation and its processes are so complicated that they are not engaged at present. Most doctors don’t understand the implications of Clauses 52, 60 and 63 either, let alone the public. This is why a public display of grassroots doctors rejecting Lansley’s reforms in their entirety at the BMA SRM is so important. This would be a profoundly symbolic moment, which could stimulate enough media and public interest to turn the tide decisively against Mr Lansley. Once the public get a whiff of what his plans really mean, this Bill is in trouble.

This is why I implore BMA members who are attending the SRM next week to vote for total opposition and also add a vote of no confidence in Mr Lansley. We need to defend the NHS from increasing commercialisation and marketisation and the medical profession needs to lead - the public will do the rest.

If we don’t take this opportunity the public will not be forgiving. We should heed the lessons from the experience of the medical profession in the US healthcare system. Between the mid-1960s and the mid-1980s, when the US was becoming increasingly commercialised, public confidence in medicine and health institutions dropped from 73 to 33%. While all major American institutions experienced a loss of public support, the medical profession lost support faster than any other professional group.

Preferred provider rule faces more challenge

By Francesca Robinson - 12th March 2010 6:43 pm

The Office of Fair Trading has been asked to investigate the government’s policy that NHS organisations should be the ‘preferred provider’ of care.

The policy was announced by health secretary Andy Burnham in September to the dismay of private providers.  

The request to the competition watchdog has been made by shadow health secretary Andrew Lansley. 

It follows a move by the Department of Health to pull the plug on an investigation into the policy by the Cooperation and Competition Panel (CCP).

The CCP had been scrutinising a decision by NHS Great Yarmouth and Waveney to exclude non-NHS providers from a £25m procurement to run its community services arm. Private and voluntary sector providers had lodged a complaint about the PCT’s anti competitive behaviour.

But on the day the CCP’s report was due to be published the DoH cancelled the entire procurement process in the East of England.

ACEVO, a body representing charities, has now lodged freedom of information requests to the DoH and the CCP to force publication of the report in a bid to shed light on the “backroom dealings”.

Stephen Bubb, chief executive of ACEVO, has also written to the Prime Minister calling for the CCP to be made independent of the DoH.

He said the DoH’s move had undermined the independence of the CCP and threw doubt on the government’s intention to encourage third sector provision.

ACEVO members were reporting a wide range of instances where PCT commissioners were discouraging provision of the third sector, he claimed.

“We believe this new policy of treating the NHS as preferred provider is a direct breach of the government’s manifesto pledge to treat the third sector on equal terms.  We urge you strongly to reverse this policy,” wrote Bubb.

Mike Parish, chair of the NHS Partners Network, the organisation that represents independent healthcare providers working within the NHS, said “NHS only” procurement was unacceptable and potentially unlawful. 

The failure of the competition panel to publish its report meant that a significant opportunity to clarify the validity of the policy had been lost.

“The behind the scenes compromise inevitably suggests that the CCP as a mechanism for maintaining a rules-based system may not be sufficiently independent of ministers and of the system it is meant to regulate,” he said.

Parish has called for the competition panel to be given genuine independence with powers aligned more closely with those of other competition authorities.

“We remain convinced that the ‘preferred provider’ concept and policy is in itself anti-competitive and will result in a failure across the NHS to secure value for money or to drive continuing improvements in quality and encourage innovation,” he said.