Derek Wanless, former chief executive at NatWest, has recommended to the Government that the nation'...
Derek Wanless, former chief executive at NatWest, has recommended to the Government that the nation's health service is better funded by taxation. Co-operation with the private sector, he claims, is not the answer.
The Chancellor has implied that he will accept Wanless's recommendations, suggesting that a substantial increase in taxes is on the cards. And with the injection of a further £1bn he hopes to develop a health service that will be envied the world over.
While the news does correspond with Labour's long-standing commitment to a universal national health service that is funded by taxation, based on clinical need and free at point of use, it does appear to fly in the face of much of Labour's recent thinking.
The Government has won two General Elections with campaigns promising public/private partnerships and has only recently confirmed a concordat with the private sector. Indeed the private sector is already investing £1bn into the NHS a year.
U-turn or not, there remains doubt as to whether a health service funded with the public purse will meet the demands of the UK population.
When it comes to health, the public are more clued up than ever before ' we are no longer passive receivers of healthcare but active consumers demanding higher standards and quicker speed of delivery. And so there is now a much greater belief that the only way the NHS will survive is if the Government is willing to forge partnerships with the private sector.
The problem, however, is that the public and private sectors are perceived to almost act in opposition.
As a result, PMI insurers are now calling for further dialogue between the two poles ' to establish what the public and private sectors can learn from each other.
Of course compulsory PMI in itself is not a solution ' the numbers of Americans who struggle to receive treatment because they cannot afford insurance is testament to this.
However, the Government could look towards Europe ' in France and Germany the delivery of healthcare is based around the blending of private and public funding. The Government pays the bulk of the cost with individuals taking out an insurance policy to cover the remainder. Those on lower incomes and the elderly receive care free of charge.
An NHS funded by general taxation is of course the ideal, but as problems within the NHS continue to worsen, it is perhaps time to consider the alternatives. Finding a solution that meets the needs of every UK citizen will be a challenge and so eliminating these alternatives without sufficient investigation, so early into the debate, may not be the best way forward.
However, with two months outstanding on the consultation it is unlikely the private sector will keep quiet.