Posts Tagged ‘Reconfiguration’

Competition watchdog supports biggest hospital trust merger

By Mike Broad - 9th February 2012 7:37 pm

The NHS competition watchdog has recommended England’s biggest hospital merger should be allowed to go ahead.

Safeguards have been agreed to protect the quality of service for patients following the proposed merger of Barts and The London NHS Trust, Newham University Hospital NHS Trust and Whipps Cross University Hospital NHS Trust.

The Cooperation and Competition Panel (CCP) will recommend to the government that the merger go ahead on the basis that the organisations can deliver on the promised benefits of the merger and keep the quality of patient care high.

If approved by the health secretary in April, the trust will become the country’s largest with a turnover of over £1.1bn.

In December, the CCP expressed concern that by reducing patients’ choice of providers, the merger was likely to adversely affect the provision of routine care provided from Newham hospital.

Catherine Davies, CCP director, said: “Given the risk that patients at Newham Hospital could lose out from this merger, it’s only after very careful consideration and a comprehensive set of safeguards being agreed that we have felt able to make this finely balanced decision. The merged trust will be subject to close and ongoing scrutiny to ensure that quality of service is not affected in the way that we - and others in the area – are concerned about and that the promised benefits of the merger are indeed delivered.

“We looked very closely at alternative merger plans for these hospitals which would not reduce patient choice in the same way. However whilst potentially offering a better outcome for patients, we had to concede that, in reality, any such alternative plans would be subject to considerable uncertainty and delay.”

The safeguards have also been agreed with local commissioners who will be able to find alternative providers to operate from the Newham site if services deteriorate under the merged trust.

Mr Michael Machesney, consultant surgeon and clinical director of Whipps Cross, said: “The merger is a great opportunity to create specialist services of national and international importance.”

Mergers don’t deal with poor performance

By Mike Broad - 12th January 2012 2:33 pm

Mergers are unlikely to be the most effective way of dealing with poorly performing NHS hospitals, according to research.

The study, by the University of Bristol’s Centre for Market and Public Organisation, finds that the wave of hospital consolidation in the late 1990s and early 2000s - in which around half the acute hospitals in England were involved in a merger - brought few benefits.

Poor financial performance typically continued, with hospitals that merged recording larger deficits post-merger than pre-merger. What’s more, waiting times for elective treatment rose after the mergers. There was also no increase in activity per staff member employed in merged hospitals, and few indications of improvements in clinical quality.

At the time of the hospital consolidation, the rationale varied from place to place, but the main reasons were reducing excess capacity, returning hospitals to financial health and producing better outcomes for patients. The study indicates that just as in the private sector, mergers offer much before the event but fail to deliver on their promises.

The research has lessons for the regulation of NHS hospitals, as policy-makers seek to promote better care for patients and to establish an appropriate way of dealing with failing hospitals.

Lead author Prof Carol Propper said: “Our findings suggest that policies to reduce the scope for competition may not be beneficial for patients or taxpayers.

“Mergers reduce the scope for competition between hospitals. And we know from other recent research that - just as in the private sector - regulated competition may be beneficial in the NHS.”

The research examined over 200 acute NHS hospitals in England between 1997 and 2006. Between these dates, around half of these 200 or so hospital trusts that existed in 1997 were involved in a merger.

The scale of the consolidation was such that the average number of hospitals in a local health economy fell from seven to five. The mergers were instigated by various parties, including local commissioners and the local strategic health authorities.

The researchers examined the merged hospitals up to four years after the date at which a merger was agreed and look at a large range of measures of performance, including the activity per staff member, financial performance, waiting times for elective surgery and a range of measures of clinical performance collected by the Department of Health and used to assess the performance of English hospital trusts.

The study finds that hospital admissions fell by around 10% four years after hospitals merged, but the number of staff fell by about the same amount. So per staff member employed there was no increase in activity.

Poor financial performance continued, so that hospitals that merged were making larger deficits post-merger than pre-merger. The length of time people had to wait for elective treatment rose post-merger, and there were few indications that clinical quality improved.

The study also found that mergers in areas where there was less capacity pre-merger were less likely to lead to reductions in activity, but also more likely to see no reduction in financial deficits.

Salient - if depressing views - of the NHS challenges in 2012

By Mike Broad - 29th December 2011 12:24 pm

It’s that time of year when the great and good send out their New Year messages i.e. there’s not a lot of news around in late December and there’s a good chance that a punchy opinion could make the headlines.

This is exactly what Mike Farrar achieved this week. Mike who? You know, the head honcho of employers’ organisation the NHS Confederation.

He says political and healthcare leaders must in 2012 persuade public to let go of “hospital-or-bust” model of care and failure to do so could lead to a potential loss of confidence in the NHS.

Setting out his top issues for 2012, Farrar says resources must shift into community-based services, early intervention and self-care.

NHS leaders believe that at least 25% of patients in hospital beds could be looked after by NHS staff at home, Farrar says. Political and NHS leaders need to be “honest about the issues, bold about the solutions and decisive in taking action”.

They must offer the public a compelling vision of how services can be better after the changes. They must avoid the traps of focussing exclusively on the closure of some hospital services and failing to explain how the public would benefit overall.

The NHS is already trying to make £20 billon worth of efficiencies by 2015 in order to cope with a flat budget and rising demand. But Farrar says the economic backdrop suggests that the age of austerity will now go on even longer, making the task more urgent.

He says: “We have had a lot of talk about changing services but 2012 must be the year we convert talk into action.  It feels like the focus is on everything but the thing that would make most difference.

“Hospitals play a vital role, but we do rely on them for some services that could be provided elsewhere. We should be concentrating on reducing hospital stays where this is right for patients, shifting resources into community services, raising standards of general practice, and promoting early intervention and self care. There is a value-for-money argument for doing this, but it not just about money and the public need to be told that. This is about building an NHS for the future.

“Care would be better for frail patients who would have fewer crises, shorter hospital stays when they need them, and more time in the comfort and safety of their homes. There would be opportunities to improve safety through consolidation of specialist services. There would be major potential to deliver better value for money and keep the NHS on a sustainable footing. We all know that quality of care will fall victim to a financial crisis.”

Mr Farrar identifies four factors that would help bring about change:

1. Strong political leadership - politicians have failed to support the NHS even when the case for change has been clear.

2. Strong clinical leadership - the voice of clinicians will be more powerful than ever under the new system but they must not be set up to fail through lack of support.

3. Changing how health services are paid for - perverse incentives often mean it may not make financial sense to provide care out of hospital even though this may be best for patients.

4. Listening to the public - NHS must always listen and be prepared to change course when it is getting something wrong.

The task of shifting public and political opinion on change is one of five key challenges for the NHS that Farrar identifies for 2012. The others are:

- Coping with unprecedented financial pressures

- Addressing concerns about the quality of care, particularly the dignity of care of older patients and the monitoring of safety

- Implementing government reforms to NHS structures, minimising distraction and loss of momentum

- Resolving the long-term funding of social care, with a failure to tackle this issue having a major impact on patients and NHS services.

Farrar says: “The NHS absolutely must rise to these challenges. Those doing the day job however face major pressures in trying to keep the NHS’s head above water. They will be trying to stop waiting times getting out of control. They will be focusing on making all the new structures work as a result of NHS reform. There is a real danger of distraction.

“We must not allow that to happen if we want 2012 to be a success.”

The other New Year’s address which caught the eye was that of Dr Brian Keighley, chairman of the BMA in Scotland, who warned that continued attacks on the medical workforce’s terms and conditions, could risk ‘compassion fatigue’ amongst NHS professionals and lead to the long term damage of the NHS.

He said that politicians should not seek to blame doctors as part of the problem but instead “look to us as part of the solution” and urged them to work more closely with doctors to identify ways to overcome the financial challenges facing the NHS in the year to come.

“It is disappointing that over the course of the year, doctors have come under repeated attack on several fronts. Their contracts are being devalued and undermined by NHS employers and now politicians are attacking the NHS pension scheme. It would appear that our political leaders perceive these to be the solution to the country’s national deficit.

“While this approach might deliver some savings in the short term, it will, in the longer term cause damage to patient care and the loss of doctors from the NHS as many may choose to retire early.  The NHS is nothing without its staff and right now with pending budget cuts, pressure on boards to make further savings, and staff cuts on hospital wards, doctors have less time to spend with patients and their goodwill is being pushed to breaking point.”

Amen to that. Neither are the most uplifting New Year messages ever, but both set the current challenges in context.

“Let go of outdated hospital-or-bust care”

By Mike Broad - 11:54 am

Political and healthcare leaders must persuade the public to let go of the outdated “hospital-or-bust” model of care in 2012, the NHS Confederation chief executive has claimed.

In setting out the big challenges for the year ahead, Mike Farrar warns of a potential loss of confidence in the NHS unless political and healthcare leaders make a compelling case to the public for changes to the delivery of services.

He believes that at least one in four patients would be better off being cared for out of hospital and resources must be shifted into community-based services, early intervention and self care.

Farrar calls on political and NHS leaders need to be “honest about the issues, bold about the solutions and decisive in taking action”.

They must offer the public a compelling vision of how services can be better after the changes. They must avoid the traps of focussing exclusively on the closure of some hospital services and failing to explain how the public would benefit overall, he says.

The NHS is already trying to make £20 billon worth of efficiencies by 2015 in order to cope with a flat budget and rising demand. But Farrar says the economic backdrop suggests that the age of austerity will now go on even longer, making the task more urgent.

He said: “We have had a lot of talk about changing services but 2012 must be the year we convert talk into action. It feels like the focus is on everything but the thing that would make most difference.

“Hospitals play a vital role, but we do rely on them for some services that could be provided elsewhere. We should be concentrating on reducing hospital stays where this is right for patients, shifting resources into community services, raising standards of general practice, and promoting early intervention and self-care. There is a value-for-money argument for doing this, but it not just about money and the public need to be told that. This is about building an NHS for the future.”

He identifies four factors that would help bring about change: strong political leadership - politicians have failed to support the NHS even when the case for change has been clear; strong clinical leadership - the voice of clinicians will be more powerful than ever under the new system but they must not be set up to fail through lack of support; changing how health services are paid for -perverse incentives often mean it may not make financial sense to provide care out of hospital even though this may be best for patients; and, listening to the public  - NHS must always listen and be prepared to change course when it is getting something wrong.

Leadership vacuum threatens care in London

By Mike Broad - 28th December 2011 9:59 am

Health services in London will be operating in a leadership vacuum following the abolition of strategic health authorities by April 2013, a report claims.

Successive reviews of healthcare in London have highlighted the poor health of the population in some areas, variations in the quality of primary care, and inappropriate configuration of hospital services.

The King’s Fund study said the most recent by Lord Ara Darzi started the process of restructuring London’s services only for the coalition government to halt the reforms.

Many of the historical problems remain and report questions who will take a lead in improving health and health care in London with the dismantling of SHAs.

There needs to be much greater clarity of roles and responsibilities within the reformed NHS structure within London to avoid ambiguity and confusion, it says.

The report suggests the particular challenges for London include a worsening in the capital’s financial situation with both providers and commissioners forecasting deficits greater than those in other parts of the country.

Furthermore, very few of the trusts that should be aiming to achieve foundation status by 2014 are likely to be financially viable by that date.

Variations in the quality of both primary and secondary care persist, it says: patients report poor quality care in general practice; health inequalities need to be addressed; reconfiguration of hospital services is needed to save lives.

In the absence of a strategic health authority, there is considerable uncertainty about who will make the difficult decisions about issues that affect the whole of London.

Improving health and health care in London presents an overview of the current financial position and the distribution of activity and resources around the various sectors of London. It assesses the likely impact of the new government’s NHS reforms and concludes with some suggestions of ways to facilitate appropriate service change, improve the quality of care, and improve the health and health outcomes of Londoners.

The report recommends that hospital services are reorganised, with emergency care concentrated in fewer hospitals.

Chris Ham, chief executive of The King’s Fund, said: “London’s NHS is in urgent need of change, but the risk is no-one will be in the driving seat to push through the changes needed to improve patient care. New pan-London health organisations are emerging, but none has a clear mandate to take the lead. Strategic leadership is important across the NHS, but in London it is particularly important as the challenges are more acute and urgent.”

A combination of perspectives is needed to drive forward the required changes, which brings together the NHS Commissioning Board, clinical commissioning groups, health and wellbeing boards and health care providers. But the report warns that this will fail unless it is clear who is responsible for overall pan-London leadership and co-ordination.

Read the report.

Finance troubles “will prompt major NHS revamp”

BBC Health - 15th December 2011 10:12 am

Financial difficulties will force NHS services in England to undergo major reorganisations which could hit the poorest the hardest, MPs say.

The Public Accounts Committee said for hospitals this could mean services being closed or whole units merged.

The MPs said the difficulties were linked to historic debt, bad management and the current drive to make savings.

And they warned the changes had to be carefully managed by ministers or else patients would suffer.

Committee chairman Margaret Hodge said it remained unclear whether the problems many of these organisations were facing could be resolved without radical change.

“These trusts will be forced into reconfigurations or even mergers.

“This may deal with the financial challenges involved but could leave some deprived communities with unequal access to high quality healthcare when hospital departments are closed and services moved.

“London is in a particularly shocking state and nobody has got a grip on long-standing problems.”

Read more at BBC Health.

“District Generals set to become medical malls”

By Mike Broad - 6th December 2011 5:31 pm

District General Hospitals are set to become ‘medical malls’ as services are migrated into the community and replaced in the hospital by commercial or retail services, a report predicts.

Research by healthcare market intelligence provider Laing & Buisson says the NHS is on the cusp of  a significant migration of secondary healthcare services which will head out of acute hospitals and into more dispersed community based settings.

Since the NHS cannot currently afford to invest in major new asset classes, the report argues, services in a variety of specialist and niche areas - such as primary medical care, occupational health, community health, prison healthcare and commissioning support (see overviews below) - will largely have to re-locate into facilities which already exist. These sites will include community health assets encompassing community hospitals and clinics, GP surgeries, care homes, people’s own homes - and indeed back into freed up space on NHS acute hospital sites, though under different management and ownership arrangements.

Report author William Laing said: “The district general hospital of the future, provided it is well served by transport, might even develop into something akin to a ‘medical mall’, to borrow a term from the United States, in which healthcare services operated by a range of providers are co-located on a site together with healthcare support companies and other retail or commercial services.”

An ageing population allied with a long standing shift in the burden of healthcare to chronic conditions of old age is driving the change.

The current NHS efficiency drive and the shift towards GP-based commissioning is also encouraging the shift with both commissioners’ and providers’ minds increasingly focused on opportunities to reconfigure traditional service models.

The report says these new areas of off-site healthcare provide massive opportunities to the independent sector in marketplaces together worth billions of pounds, including areas such as community, occupational and telehealth.

In a ‘zero growth’ NHS, building these services will depend on money being transferred from hospitals, which currently absorb the lion’s share of resources and ploughed into these new areas. In 2009/10 the NHS in England alone spent £42bn on acute hospital services (excluding mental health).

Laing said: “Nearly all of the potential migration of services out of hospital will depend on politicians being willing to support the decommissioning of at least a portion of acute NHS hospital capacity currently used to care for mainly older people admitted as emergencies to medical wards, most of whom do not actually need to be in hospital. Without closure, partial closure or re-use of some NHS acute hospital capacity, none of the theoretical savings from the creation of alternative community based healthcare services will be ‘cashable’.”

The ‘market sizes’ for independent providers

1. Primary medical care:

The NHS in England spent £8.3bn on GP services in 2009/10. While the sector remains dominated by traditional, small scale general practices, the report notes the emergence of a ‘corporate’ sector of multi-practice groups such as The Practice, which operates 60 general practices in addition to a range of related healthcare services for the NHS.

The report estimates that multi-practice groups currently generate revenues of £185m, or just 2.2% of the addressable NHS general practice market, but this corporate sector is set to expand as structural barriers to competition amongst general practices are lowered under Coalition government plans.

Privately paid general practice is currently a larger market, valued at £500m in 2010, but it remains something of an investment backwater, dominated by small scale, professionally based providers.

2. Occupational health services:

Overall UK spending on occupational health is estimated to be around £500m in 2010, of which about half (£250m) is believed to be contracted out to commercial occupational health providers. The sector has not grown at all since the 2008/09 recession and it may in fact have contracted.

3. Community health services:

Community Health Services cover a range of low-tech services typically led by nurses and professions supplementary to medicine. The addressable market is £8-8.5bn in England alone, of which an estimated £860m is delivered by social enterprises and £830m by for-profit providers, the latter mainly through small scale contracts with PCTs or sub-contracts with primary contractors. While market penetration has been slower than the independent sector had hoped, there have been major contract wins by for-profit groups in 2011, including Assura Medical’s £450m five-year contract to provide community health services in Surrey. According to the report, it is possible to envisage an independent sector penetration, over and above the social enterprise spin-offs, of perhaps 20% or more of this £8.5bn market over the next five years. This would give independent sector providers a share approaching £2bn per year, according to Laing & Buisson.

4. Prison healthcare:

The UK addressable market for offender healthcare is estimated at a little over £300m a year. The share that is outsourced to the independent sector is unknown, but is probably in the region of £50 - £100m a year and continues to grow.

5. Commissioning support services:

The government recognises that Clinical Commissioning Groups, which under the government’s NHS reform plans will take over responsibility for commissioning £80bn of NHS services in England by April 2013, will need to employ or buy in commissioning support services. This provides a major new opportunity for independent sector organisations with the appropriate skill sets to provide some of those support services that CCGs will require. The addressable market is estimated at £1.3bn.

According to the report, a cadre of professional commissioning support staff will emerge, most of them with past experience working for PCTs, but they will be employed in a wide range of public sector organisations, social enterprises and nationally and locally based for-profit companies, the balance of which will determined in large part by the early choices that pathfinder CCGs make, the report concludes.

Colleges disappointed by halt of surgical review

By Mike Broad - 22nd November 2011 3:05 pm

Royal colleges have united in their condemnation of the High Court’s decision to find the review of paediatric heart surgery “unlawful”.

The Royal Brompton recently won its judicial review into the decision to close its paediatric heart surgery unit, undermining the validity of the national consultation on service reconfiguration.

The west London hospital challenged the way the consultation was carried out by a Joint Committee of Primary Care Trusts. As a result of the ruling being upheld, the wider consultation will almost certainly have to be carried out again.

The move was part of wider consolidation of moving surgery to fewer sites across England.

However, in a letter to The Guardian, the Royal College of Surgeons, the Royal College of Paediatrics and Child Health and the Royal College of Nursing express “disappointment” in Mr Justice Owen’s decision.

They say: “This review was not undertaken lightly and never before have we been so close to achieving real change. It is frustrating that we find ourselves facing a further wait. The fact is we have too many surgeons spread too thinly across numerous hospitals. Concentrating clinical expertise into larger, specialist centres and developing networks of expert cardiology care will give children born with complex heart conditions the best quality of care.

“These children shouldn’t have to wait any longer for urgent changes to be made to services.”

The review has been halted because assessment of the Royal Brompton’s research programme was bungled.

According to Justice Owen, the consequence was to “…seriously distort the consultation process. Those responding to the Consultation Document would inevitably have proceeded on the premise that the RBH Trust’s capacity for research and innovation was poor.”

The letter in The Guardian acknowledges “Brompton’s disappointment” but continues “we need to look to sustain a high-class, sustainable service capable of delivering optimum training in the future. Changing services is not easy, but the NHS must continue its vital work and make decisions as a matter of urgency to ensure better outcomes for children with congenital heart disease in the future.”

It is signed by Professor Norman Williams, president of the Royal College of Surgeons, Dr David Shortland, vice-president of the Royal College of Paediatrics and Child Health, and Dr Peter Carter, chief executive and general secretary of the Royal College of Nursing.

Mr Bob Bell, chief executive of Royal Brompton & Harefield NHS Foundation Trust, said: “The position of our trust remains that the number of paediatric cardiac surgery patients in London and the South East warrants a paediatric network system, comprising the three current outstanding centres, each of which offers a different but complementary model of care, admired in many parts of the world.

“We already work closely and successfully with both Great Ormond Street and Guys and St Thomas’s. There is more that can be done, indeed must be done, as we strive to find a solution for the implementation of such a system.”

Judge quashes paediatric heart services review

By Mike Broad - 7th November 2011 9:41 pm

The Royal Brompton has won its judicial review into the decision to close its paediatric heart surgery unit and thrown the validity of the national consultation on service reconfiguration into doubt.

The west London hospital challenged the way the consultation was carried out by a Joint Committee of Primary Care Trusts. As a result of the ruling being upheld, the wider consultation will almost certainly have to be carried out again.

The move was part of wider consolidation of moving surgery to fewer sites across England.

The judgement, by Mr Justice Owen, centred on the assessment of Royal Brompton’s ‘research and innovation’ score in the exercise that determined which centres were included in the options to be put to public consultation. Two separate analyses of each centre were undertaken as part of the Safe & Sustainable programme. The first included self-assessment exercises and visits to all centres from an independent panel led by Sir Ian Kennedy.

The second ‘configuration evaluation’ was carried out some months later by management consultants KPMG, and was used to identify suitable configurations of surgical centres around the country. These configurations became the four options in the public consultation (A-D).

The assessment stage concentrated on the safety and sustainability of each centre and did not ask centres for, or include an evaluation of, paediatric cardiac research output and quality (its main focus being clinical services). So, detailed information on Royal Brompton’s paediatric cardiac research output and programme was not supplied, because it was not asked for.

It was not until a public meeting in February 2011, that representatives from the hospital became aware that a score which rated Royal Brompton’s paediatric cardiac research programme had been used during the second ‘configuration evaluation’ exercise. On investigation it became apparent that this score had been determined using information supplied for the first, unrelated assessment, despite the fact that it had been made clear that the two would be separate exercises.

No specific information on the hospital’s paediatric cardiac research programme had ever been requested and without the benefit of relevant information, a low score was given.

According to Justice Owen, the consequence was to “…seriously distort the consultation process. Those responding to the Consultation Document would inevitably have proceeded on the premise that the RBH Trust’s capacity for research and innovation was poor.”

Mr Bob Bell, chief executive of Royal Brompton & Harefield NHS Foundation Trust, called it an important day for the whole of the NHS.

He said: “The real tragedy is that the judicial review could and should have been avoided. It was obvious to us from the outset that there were errors in the Safe & Sustainable process and we made Sir Neil McKay, chair of the Joint Committee of Primary Care Trusts, aware of our concerns. His refusal to consider these issues left legal challenge the only option open to us.

“The position of our trust remains that the number of paediatric cardiac surgery patients in London and the South East warrants a paediatric network system, comprising the three current outstanding centres, each of which offers a different but complementary model of care, admired in many parts of the world. We already work closely and successfully with both Great Ormond Street and Guys and St Thomas’s. There is more that can be done, indeed must be done, as we strive to find a solution for the implementation of such a system.”

The court bid - brought by the Royal Brompton and Harefield NHS Foundation Trust - represented the first time that one NHS organisation has taken legal action against another.

The Royal College of Surgeons said the decision by the High Court to find the review ‘unlawful’ was disappointing.

Professor Norman Williams, president of the Royal College of Surgeons, said: “While it would be understandably disappointing for those high-performing units that would need to close as a result of the review, these decisions have to be been taken in the very best interest of the patients involved.

“Surgeons agree that a comprehensive, stable and safe children’s heart surgery services would be best delivered in fewer centres staffed by a minimum of four surgeons who are able to offer 24 hour care and support for each other.  It is deeply concerning that a national issue with widespread support from the profession can be held up in this way. ”

Royal Brompton starts High Court legal challenge

BBC Health - 27th September 2011 11:11 am

The Royal Brompton Hospital is starting a legal challenge over what it says was “deeply flawed” consultation which it claims has led to its children’s heart surgery unit facing closure.

It says the shutting down of the unit would put the viability of the whole hospital at risk.

The hospital in Chelsea, west London, has the largest specialist heart and lung centre in the UK.

A judicial review over the consultation begins later at the High Court.

Its challenge, which is expected to be heard over three days, is against the consultation process launched by the Joint Committee of the Primary Care Trusts of England as part of a national review aimed at streamlining paediatric congenital cardiac surgery services around the country.

Read more at BBC Health.