WHO WILL BE CASHING IN ON THE HEALTH BILL? - The NHS MATTERS AND MUST BE RESCUED FROM THE CLUTCHES OF PRIVATISATION

DESTABILISING OUR HEALTH CARE SERVICE? HOW PRIVATE COMPANIES COULD THREATEN THE ETHICS AND EFFICIENCY OF THE NHS.

Commercial companies are preparing to cash in on a multi billion pound opportunity to run the NHS hospital services - according to our latest report. Examining the business strategy of leading private health care providers, we found them to be highly enthusiastic about the Governments changes to the NHS and the business opportunities that they will create. They are among the few organisations who are in support of the proposed reforms. However, our detailed analysis of six health care providers actively seeking NHS contracts suggests that their commercial interests will inevitably clash with those of the NHS and its patients.

Commercial providers plan to expand on the back of the new opportunities for more private/NHS partnerships. The UK's two largest providers of private inpatient care believe that the pressure on the NHS to make savings will mean a boost for the self-pay and insurance market. BMI/GHG and HCA international are planning to help NHS trusts raise their income by developing their own private patient units - one of the commercial opportunities created by the Government's controversial health bill.

There is a strong interest in contracts to run entire NHS hospitals. Circle won a race against 11 bidders, the first contract of its kind, to manage the Hinchingbrooke NHS hospital. That contract began on February 1st and is part of a market opportunity worth billions. Our report identifies clear dangers from becoming more reliant on the private sector to treat NHS patients. Public statements from providers like Ramsay Health indicate that they would be willing to walk away from contracts which were not creating enough profit.

Four of the companies analyzed in the report have large investments from private equity companies, which could force changes in a company's business strategy to suit their own profit motives but undermine the care of the NHS patients. Circle and BMI are both backed by private equity firms and have structured their assets so that property can be disposed of when the market is right or have property already managed as a separate business. This approach is widely considered to be a major reason for the financial mess that the care-home provider Southern Cross found itself in.

The business record of some of the new providers also raises doubts about their suitability as providers in the NHS. Our report highlights companies with connections to corporate fraud and illegal kidney transplantation - which brings into question whether some commercial companies would uphold the values of the NHS, as would be their duty under the NHS Constitution.

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From: James=nhscampaign.org@mall49.us1.rsgsv.net on behalf of the NHS Support Federation.