NHS and private sector must unite in health cost reform

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Senior figures from the NHS, private and third sectors are calling on the Secretary of State to reform the healthcare procurement system, encouraging joint working between public and private sectors.

Chaired by Sir William Wells, former chairman of the NHS Appointments Commission and Commercial Advisory Board to the Department of Health, the panel has consulted the NHS and private sectors on the why, what and how of strategic partnerships.

It concluded that the NHS is facing a significant reduction in funds and must change its patterns of care and culture.

The group's report: 'Partnerships for Healthy Outcomes: Making partnerships work between the public, private and third sectors' will be distributed to all NHS Chief Executives, key private sector organisations, think tanks and charities.

Key findings and recommendations include:

• There are not enough partnerships between the NHS and external parties; most relationships are transactional. Yet, 51% of the NHS respondents expect to have a greater number of external contracts in the next 12 months.

• The Secretary of State must decide who is responsible nationally for promoting partnership working. Locally, leadership at all levels is essential to make partnerships successful.

• There is a lack of trust and knowledge about how each sector works: 37% of private sector respondents think that the NHS CEO takes the final decision on high value contracts, only 6% of NHS respondents this the NHS CEO takes these decisions.

• The current procurement system is unhelpful, bordering on obstructive and in need of reform. Competitive dialogue and soft market testing should be integral to the process.

• Contracts must be outcome focused, transparent and open to scrutiny. 54% of NHS feels there are enough outcome-based specifications in contracts, 66% of the private sector feel there are not enough outcome-based specifications in contracts.

• The private sector must adapt to the NHS system by understanding the NHS agenda, history and culture and modify ways of working to accommodate this.

The report will be a living document subject to annual review, reporting on progress and supplementing the existing guidance.

In the coming months there will be a series of regional events with reference panel members, focusing on the key recommendations and guidance.

Sir William said: "All procurement processes should have outcomes for patients as their chief aim. Currently they do not help the patients, the NHS or any other sector.

"It is up to the NHS and the private and voluntary sectors to take ownership of this challenge and make it work for all parties.

"Pooled skills and ideas will improve patient outcomes. I believe the report makes a convincing case for partnerships and shared outcomes, not transactional contracts."

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