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Reason for the Reorganisation

The point that government leaders are constantly making is that the NHS has to be changed because it has been doing so badly. A recent analysis reported showing the NHS is one of the best health services in the world undermines the Government's argument for a massive reorganisation. The recent Commonwealth Fund survey ranks the NHS highly on a range of measures looking at how health systems deal with people with chronic and serious illness. Of 11 high income countries surveyed it finds the NHS provides the fastest access to GPs, the best co-ordinated care, and suffers from the among the fewest medical errors.

The success of the NHS stands out despite the fact that per capita health spending in the UK is low at £2,170 per head, compared with £3,200 in Switzerland and £4,950 in the US. The study undermines the Government's rationale for embarking on such an ambitious reorganisation of the NHS.

The original government proposals

 

Click here for an excellent New England Journal of Medicine view of the proposals, summarised in the table (above).

 

One central question is whether abolishing two tiers of NHS bureaucracy will actually cut management costs. The two tiers were involved in planning, funding and organising the NHS, the third largest organisation in the world. General Practitioners have virtually no planning, funding or management training, so will have to buy in those services. The way the GP commissioning groups or consortia are progressing it looks as if England will eventually have between 300 and 350, this is about half the number originally envisaged by the government, who aimed to have a consortium for every 100,000 of the population. The lower tier which is being abolished consists of 150 Primary Care Trusts (PCTs). These were merged from about 300(!), by the Labour Government three years ago in order to cut management costs. The reason the consortia are bigger than was envisaged has to do with managing risk. It only requires a couple of patients with really complex problems in a small organisation to bankrupt it. The larger the organisation the more likely it will be to have average costs.

As for bureaucracy, any organisation, especially one dealing with large sums of money will require managers. At the least each organisation will require a person to manage finances, human resources. Just understanding to incredibly complicated way the GPs get paid takes more management. The public health function, involved in planning and ensuring quality, was also held at PCT level and will move to local authorities. Is this an example of moving their costs to a different vote head?

Other important questions are; will the new consortia inherit the deficits held by the PCTs? It will not cheer them up to have huge bills to start with. Who do these consortia belong to? GPs never joined the NHS in 1948, being 'independent contractors'. This was largely a tax dodge for many years, but they are very keen on keeping this status. Will this change, or will any profits go into your local GP's retirement fund?

Allyson Pollock a well-known activist in fighting the privatisation of the NHS has a detailed critique here.

The reforms have now (Sept 2011) been passed after considerable amendment but the BMA still has considerable concerns and hopes to derail the bill in the House of Lords. Their three main areas of concern are:

  • Inappropriate and misguided reliance on market forces
  • Unintended, knock-on impacts with longer-term consequences such as the impact on public health and medical education and training
  • Over complexity and bureaucracy following recent changes to the Bill

 

Some history and further background:

The internal market or managed competition is ‘a beautiful animal in fairyland but unseen on earth’- a unicorn, said Representative Pete Stark Chair of House of Representatives Committee on Health, in 1993.

In 1920 the Dawson council suggested the development of preventative and other services around health centres, some to be designated as primary centres, others secondary.  Primary health centres would be run by general practitioners with some assistance from visiting consultants and would deal with the simpler cases.  Complicated illnesses would be sent to the secondary health centres staffed by consultants and specialists.  The development of such community based health services was to be suggested at regular intervals over the next 90 years, including by the present Coalition government. 

All hospital trusts are also to be given Foundation status, allowing them much more freedom to make their own decisions. There are suggestions that local units should have more control over training and education. This can be a concern, for, in the past, some hospitals have invented their own grades of doctors, who may not have had the rigorous training normally required for a standard grade.  

The BMA have come out with a paper on the proposed changes, click here.

Scroungers

I see scroungers are back, in the guise of 'people who make a lifestyle choice not to work'. I wonder if Mr Cameron remembers the words of Alfie Doolittle. 'We undeserving poor needs more than the deserving. We eats more and certainly drinks more than the deserving'.

The Beveridge Report, in 1942, identified five "Giant Evils" in society: squalor, ignorance, want, idleness and disease. The Chancellor of the Exchequer, true to form for Chancellors through time, believed the Report to be "ambitious and involv[ing] an impracticable financial commitment" and therefore publication should be postponed. However the Cabinet decided to publish it. Interestingly the Labour Party were initially against it, but the ground-swell of public opinion and some Labour back-benchers overcame their concerns. There have been a huge number of additional reforms to the Welfare State since. Click here for a useful time line.

There is a feeling from this line that the politicians early in the century were altruistic and positive about what they were trying to do, whereas later there was a feeling of niggardliness about their approach.


 

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The Government have announced that General Practitioners are to be the lead professionals in deciding how the NHS should be run. They are said to know what patients want.... But do they know what they need? Interestingly the government have now retracted from their original plans to some extent, so that hospital doctors and other professionals will be involved in purchasing care. Read more..


Norman Vetter
Cardiff

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Last edited:  09/01/2012          Copyright 2011 -- Norman Vetter