NHS might have to attract more private money if it is to improve standards
BMJ 2008; 336 doi: https://doi.org/10.1136/bmj.a440 (Published 26 June 2008) Cite this as: BMJ 2008;336:1457All rapid responses
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I read with interest Rebecca Coombes article (28th June 2008 p.1457) on the first BMJ lecture. In that lecture, Professor Chris Ham commented on the issue of “top-up” payments for drugs not available on the NHS and the review I am undertaking on behalf of the Health Secretary.
Chris is quoted as saying that “my suspicion is that Mike Richards already knows the answer”. In fact, I have a completely open mind about the recommendations, which will come out of this review in October. I am keen to hear views and evidence from all sides of the debate. I would strongly encourage anyone wishing to give their view to e-mail the dedicated address for the review at additionaldrugsreview@dh.gsi.gov.uk.
Yours faithfully,
Professor Mike Richards
National Cancer Director
Competing interests: None declared
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Chris Ham’s rather one sided version of the private healthcare market in the USA and forgets the lost tribe of 60 million uninsured Americans. Private companies are in medicine for cherry picking the profits (including the directors of so-called not-for-profit companies) and it is both an inefficient and expensive way of providing healthcare (1). The Democrats in the USA want to bring in a national healthcare service and the USA healthcare system is routinely voted as performing very poorly compared with other developed countries. In contrast the UK system scores highly. Figures show that every US car made, costs the GM company $2,000 added for health insurance costs. When I was in San Francisco I witnessed the thousands of homeless wandering the streets at night consisted of the mentally ill (no job, no medical insurance, no money – Ninjas).
The public should be involved in a more open debate about how much we want to spend on healthcare (and what taxes they and companies are willing to pay), given that it is a bottomless pit. Britain has become an on-shore tax haven for the rich and the Inland Revenue (under a freedom of information act request from Private Eye) has estimated that this looses the UK government £40 billion in tax annually. We still spend much less of our GDP on healthcare than France does!
Ref
Karen Davis, Uninsured in America: problems and possible solutions, BMJ 2007;334;346-348
Competing interests: None declared
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Chris Ham correctly points out that the UK's private sector in health care is not as developed as other Western countries. This is a good point. However the reason for this is arguably because the government has gone about engaging the private sector in completely the wrong way.
The government has directly funded the private sector to carry out NHS work in a rather inefficient manner as evidenced by schemes like ISTCs (1,2). A naive and faulty belief in 'competition' between providers has resulted in a massive waste of public money, with NHS services being starved of funding while private providers have been allowed to cherry pick the easy and profitable NHS work.
We want a symbiotic relationship between the public and private sectors, not the current parasitic one in which the private sector is bleeding the NHS dry. This will not be achieved by directly funding the private sector with tax payer's money, whether this be from the coffers of PCTs or elsewhere.
The way to build a symbiotic relationship is to encourage more patients to go privately so that strain is taken off the already stretched NHS, while the increased trade for the private sector leads to its natural expansion. The current system actually does the opposite as patients who choose to pay for private treatment sometimes have their NHS care withdrawn (3), this is both stupid and grossly unfair. If someone needs a hip replacement then why not encourage them to get it done privately by paying a certain percentage of their private fees for them? In this way everyone can win, the NHS saves money as the payment costs way less than it would have cost to provide the operation and the private sector blossoms.
The government's current perverse and illogical ideology means that it is cutting off its nose to spite its face. Billions are wasted on directly funding inefficient schemes involving the private sector, while cheap and efficient ways of involving the private sector are deliberately obstructed. So I would advise a little less of the top down interference and a bit more tinkering with the system so that an environment is created in which the public and private sectors can work with each other, rather than against each other. Even then there will still be calls for more money for the NHS, after all health care is a potentially bottomless pit.
1.http://www.timesonline.co.uk/tol/news/uk/health/article649424.ece
2.http://www.hsj.co.uk/news/2008/03/further_bill_looms_for_istcs.html
3.http://www.epolitix.com/mpwebsites/mpspeeches/mpspeechdetails/newsarticle/nhs -co-payments-and-the-case-of-mrs-oboyle///mpsite/10764/?no_cache=1
Competing interests: None declared
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As usual, Chris Ham makes many interesting points in his article, about collaboration, strategy and consultation. But his suggestion that more private funding is needed for better healthcare is potentially misleading. The quantity of healthcare we can afford depends on the price we pay for the inputs. Compared to Europe, I understand that doctors are relatively well paid following their new contracts. While it might be difficult to limit the pay of NHS staff in future, a serious downturn in the economy could lead to everyone facing a fall in real incomes, not just doctors. For example, the presence of unemployed doctors could have an effect. (I am not recommending slashing doctors' pay, simply noting that it is not immutable over the longer term, any more than anyone elses.)
There are other pressures on costs and the Pharmaceutical Price Regulation Scheme is being renegotiated. (Staff of all kinds are a much bigger cost than prescriptions of course). In addition, a great deal depends on how the demographics of the UK develop. If we have extensive immigration of working age adults then over time the cost of older people's healthcare will become a smaller part of the tax burden, though long term care and pensions for the elderly will remain a serious financial issue for some time to come. In the recent past Labour also raised spending on the NHS partly through a sort-of earmarked increase in National Insurance, without too much complaint. It could do so again, not least because for any given quantum increase in total healthcare, it is generally likely to be cheaper to provide it through the public sector than the private sector, particularly in the efficiency of the public sector improves over time. None of these factors will of themselves solve all the funding problems faced by the NHS, perhaps, but we should be wary of jumping straight to private funding as the only way out.
Competing interests: The author is a senior research associate at YHEC, a contract research and consulting company at the University of York. He has worked on a wide range of NHS projects and led the Healthcare Commission's fieldwork and drafting for the recent report with the Audit Commission on the NHS Reforms. He is not currently working for any part of the NHS but hopes to do so again soon.
Competing interests: No competing interests
JCCO survey on top up payments
References 1. Coombes R. NHS might have to attract more private money if it is to improve standards.BMJ 2008; 336:1457 2. Audrey S, Abel J, Blazeby JMK, Falk S, Campbell R. What oncologists tell patients about survival benefits of palliative chemotherapy and implications for consent: qualitative study. BMJ 2008;337:
Competing interests: None declared
Competing interests: No competing interests