£3bn NHS contracts offer to private sector

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NHS: Leaked document reveals plans to transfer NHS buildings to private networks

The Secretary of State for Health, Patricia Hewitt, is to announce plans to transfer NHS buildings and staff across to private hospital networks as part of the Government's commitment to greater patient choice.

The plans are part of a £3bn scheme detailed in a leaked document that was sent to companies seen as prospective bidders for the 24 contracts to run NHS facilities across England. Under the proposals NHS staff will work at sites operated privately although they will have the option to remain on the NHS payroll.

Among the units up for grabs are state of the art operating theatres currently under construction in Birmingham and the New Forest and surgical units at Ravenscourt Park hospital in west London.

"We are buying 1.7 million operations for NHS patients delivered according to NHS principles and NHS standards at a cost of £3 billion," said Matthew Ward, press officer at the Department of Health." The NHS will not lose any staff. There will be no compulsory transfers of employment and all transferred staff will retain their employment with the NHS if they wish," he added.

The new contracts follow the outsourcing of 25,000 knee and hip operations to two private hospital networks in 2004. Ward denied however that this latest public-private enterprise takes the NHS a step closer to privatisation: "To get this in context, by 2009 the independent sector will account for about 1% of the overall NHS budget and about 10% of all elective operations provided to NHS patients."

Private hospital networks expressed excitement about the opportunities the new NHS work represents. "We are already involved in NHS contracts in hospitals around the country and we expect to bid for more NHS work in the future," said Lydia Aydon, public relations manager at BUPA.

A spokesperson from Capio Healthcare, which is already treating NHS patients at five facilities, echoed these sentiments saying: "Capio welcomes any future opportunity to continue to help the NHS reduce waiting times."

In spite of the possibility that increased volumes of NHS patients may prove detrimental to the care that private medical insurance (PMI) patients receive, insurers were positive about the new contracts.

"This is good news for PMI providers as it will increase efficiency in private hospitals as staff will have to work in different scenarios. The relationship between the NHS and the private sector is changing; we are now working together more closely so we absolutely welcome this news," said Howard Hughes, head of marketing at BCWA.

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