NHS: Nuffield restructures in order to treat more outsourced NHS patients
Nuffield Hospitals is restructuring its business in a bid to treat more outsourced NHS patients. The reorganisation is in response to the 'volume decline and price deflation' that will soon hit the private medical insurance (PMI) sector if premiums remain high and continue to drive potential clients into the arms of an improving NHS, according to Nuffield's chief executive, David Mobbs.
The restructure will place greater emphasis on NHS procedures by cutting operation charges to levels that the NHS is prepared to pay. Last year Nuffield was one of two private hospital firms to be awarded contracts to carry out 25,000 NHS knee and hip operations. Subsequently, 11.7% of Nuffield's surgical work in 2004 came from the NHS, a 63% increase on 2003. The firm now plans to bid for the next generation of independent treatment centres, which expects to treat 250,000 NHS patients by the end of 2005.
Mobbs promised the realignment of the business will mean Nuffield will be able to offer lower prices if insurers and patients are willing to access its services in ways that lets it run them more efficiently. Although it has been reported that the firm has given notice of termination on existing arrangements with health insurers to secure more flexible prices and packages, providers are adamant that the restructure will be good for both patients and insurers.
"This is a good thing for providers since it can only bring greater transparency to the sector," commented Charlie MacEwan, director of communications at WPA. "Rather than simply being treated as patients, those in need of treatment should begin to be regarded as customers," he said.
