BMJ 2013;347:f6694 doi: 10.1136/bmj.f6694 (Published 5 November 2013)
Page 1 of 1
News
NEWS Private equity firms are invited to get involved with commissioning Gareth Iacobucci BMJ
Health campaigners have reacted angrily to reports that private equity companies have been approached to help run organisations that advise the NHS on purchasing billions of pounds of healthcare services in England. The Financial Times reported on 4 November1 that several companies had been approached by the NHS about the possibility of taking over or merging with 19 commissioning support units (CSUs), set up under the Health and Social Care Act 2012 to advise clinical commissioning groups (CCGs) on NHS spending.
NHS England told the BMJ that it had held “exploratory” talks with potential providers and investors from the private and voluntary sectors to discuss how they may become involved in the organisations, which provide services such as contract management, procurement advice, and back office IT support.
The National Health Action (NHA) party, the political party established by doctors to protect the NHS, described the move as “a further step towards privatising the NHS.” The party warned of conflicts of interest if firms offered commissioning support in areas where they could also provide NHS services. In addition to their other functions, CSUs provide commissioning groups with health needs assessments, business intelligence, and support for service redesign, and currently employ around 9000 staff2—including many from now disbanded primary care trusts.
The 19 units are currently subsidised by the NHS, but will operate in a competitive and open marketplace from 2016, when they are expected to either become independent companies or to form joint ventures with public or private sector companies. Aatif Hassan, partner at August Equity, was quoted by the Financial Times as saying: “The NHS has approached us and a number of private equity groups.” Support services companies such as Atos, Serco, and Capita will also be competing in the new market, and have already begun offering some support to CSUs.3 4 5
Louise Irvine, executive member of the NHA party, a GP in Lewisham, southeast London, and member of BMA Council, said: “This is a further step towards privatising the NHS. Private equity companies are clearly only interested in profits. They have no commitment to the values and principles of the NHS as a public service.
For personal use only: See rights and reprints http://www.bmj.com/permissions
“There will be huge conflicts of interest as they will give lucrative contracts to their friends in the private sector. Deals will be hidden behind commercial confidentiality. Money will be drained from the NHS into private pockets and there will be further cuts to frontline services as a result.”
John Lister, member of the NHA party and director of campaign group London Health Emergency, added: “Putting private equity firms in de facto charge of commissioning—advising GPs and shaping local policy options for CCGs—is really like putting Dracula in charge of the blood bank.” But in a statement to the BMJ, Bob Ricketts, director of commissioning support strategy at NHS England, said that stimulating the market would allow commissioners to access “professional, at-scale” support that was “essential” to securing the best services and outcomes for patients, and value for money for taxpayers.
“Key to achieving this is supporting the development of a cohort of high quality providers, drawing from the skills and expertise of the best of the NHS (CSUs) and voluntary and commercial organisations,” said Ricketts.
“We have therefore been encouraging potential providers and investors to explore how they could collaborate or partner to deliver excellent innovative commissioning support, to help drive up quality, outcomes and value for money. These discussions are exploratory, but have revealed significant interest from voluntary and commercial organisations in supporting the development of excellent commissioning support.” 1 2 3 4 5
Plimmer G. NHS approaches equity groups for services takeover. Financial Times 2013 Nov 3. www.ft.com/cms/s/0/657b30e6-357a-11e3-952b-00144feab7de.html# axzz2jgWdbz1t. NHS England. Towards commissioning excellence: a strategy for commissioning support services. June 2013. www.england.nhs.uk/wp-content/uploads/2013/06/towa-commisexc.pdf. Atos healthcare. Creating a leading edge commissioning support unit. 2013. http://uk. atos.net/en-uk/industries/healthcare/commissioning-support-unit/default.htm. Serco. Serco signs ASP shared services NHS strategic partnership. April 2012. www. serco.com/media/pressreleases/2012/aspnhs.asp. Capita. Developing commissioning support services. www.capitaconsulting.co.uk/ Downloads%20Capita%20Consulting/Developing%20Commissioning%20Support% 20Services.pdf.
Cite this as: BMJ 2013;347:f6694 © BMJ Publishing Group Ltd 2013
Subscribe: http://www.bmj.com/subscribe
Page 1 of 1
News
NEWS Private equity firms are invited to get involved with commissioning Gareth Iacobucci BMJ
Health campaigners have reacted angrily to reports that private equity companies have been approached to help run organisations that advise the NHS on purchasing billions of pounds of healthcare services in England. The Financial Times reported on 4 November1 that several companies had been approached by the NHS about the possibility of taking over or merging with 19 commissioning support units (CSUs), set up under the Health and Social Care Act 2012 to advise clinical commissioning groups (CCGs) on NHS spending.
NHS England told the BMJ that it had held “exploratory” talks with potential providers and investors from the private and voluntary sectors to discuss how they may become involved in the organisations, which provide services such as contract management, procurement advice, and back office IT support.
The National Health Action (NHA) party, the political party established by doctors to protect the NHS, described the move as “a further step towards privatising the NHS.” The party warned of conflicts of interest if firms offered commissioning support in areas where they could also provide NHS services. In addition to their other functions, CSUs provide commissioning groups with health needs assessments, business intelligence, and support for service redesign, and currently employ around 9000 staff2—including many from now disbanded primary care trusts.
The 19 units are currently subsidised by the NHS, but will operate in a competitive and open marketplace from 2016, when they are expected to either become independent companies or to form joint ventures with public or private sector companies. Aatif Hassan, partner at August Equity, was quoted by the Financial Times as saying: “The NHS has approached us and a number of private equity groups.” Support services companies such as Atos, Serco, and Capita will also be competing in the new market, and have already begun offering some support to CSUs.3 4 5
Louise Irvine, executive member of the NHA party, a GP in Lewisham, southeast London, and member of BMA Council, said: “This is a further step towards privatising the NHS. Private equity companies are clearly only interested in profits. They have no commitment to the values and principles of the NHS as a public service.
For personal use only: See rights and reprints http://www.bmj.com/permissions
“There will be huge conflicts of interest as they will give lucrative contracts to their friends in the private sector. Deals will be hidden behind commercial confidentiality. Money will be drained from the NHS into private pockets and there will be further cuts to frontline services as a result.”
John Lister, member of the NHA party and director of campaign group London Health Emergency, added: “Putting private equity firms in de facto charge of commissioning—advising GPs and shaping local policy options for CCGs—is really like putting Dracula in charge of the blood bank.” But in a statement to the BMJ, Bob Ricketts, director of commissioning support strategy at NHS England, said that stimulating the market would allow commissioners to access “professional, at-scale” support that was “essential” to securing the best services and outcomes for patients, and value for money for taxpayers.
“Key to achieving this is supporting the development of a cohort of high quality providers, drawing from the skills and expertise of the best of the NHS (CSUs) and voluntary and commercial organisations,” said Ricketts.
“We have therefore been encouraging potential providers and investors to explore how they could collaborate or partner to deliver excellent innovative commissioning support, to help drive up quality, outcomes and value for money. These discussions are exploratory, but have revealed significant interest from voluntary and commercial organisations in supporting the development of excellent commissioning support.” 1 2 3 4 5
Plimmer G. NHS approaches equity groups for services takeover. Financial Times 2013 Nov 3. www.ft.com/cms/s/0/657b30e6-357a-11e3-952b-00144feab7de.html# axzz2jgWdbz1t. NHS England. Towards commissioning excellence: a strategy for commissioning support services. June 2013. www.england.nhs.uk/wp-content/uploads/2013/06/towa-commisexc.pdf. Atos healthcare. Creating a leading edge commissioning support unit. 2013. http://uk. atos.net/en-uk/industries/healthcare/commissioning-support-unit/default.htm. Serco. Serco signs ASP shared services NHS strategic partnership. April 2012. www. serco.com/media/pressreleases/2012/aspnhs.asp. Capita. Developing commissioning support services. www.capitaconsulting.co.uk/ Downloads%20Capita%20Consulting/Developing%20Commissioning%20Support% 20Services.pdf.
Cite this as: BMJ 2013;347:f6694 © BMJ Publishing Group Ltd 2013
Subscribe: http://www.bmj.com/subscribe
