Patrick Newman's Comments
The question is whether C&P are capable of not only running the tendering process but ensuring that the services are delivered including controlling the inevitable changes that will occur over the five year period. Will they have to seek outside support for running the contract and could there be hidden costs accumulating as the contract develops.
It is becoming increasingly difficult for the Coalition to maintain that the NHS budget was truly ring fenced. Labour must make a commitment for additional resources if it wishes to claim the service will be safe in their hands after 2015!
In comparison to the figures and analysis produced by HSJ Mr Edwards' thoughts seem a little complacent.
Here's a clue - "These would appear to be very simple things that they will do around all of the back office functions including procurement.... they’ve made substantial savings in those areas." It is highly likely that he would not have uncovered any downside to back office savings - e.g. work passed onto to medical and their direct support staff. In the larger picture will Dalton look at the benefits of sharing and cooperating rather than competing?
Comment on: Bailouts show trusts need a better way to fail
Now that trusts have been found out achieving their QIPP targets by de-staffing and downgrading T&C's we can expect more failures of trusts be be commercially successful in the internal market regime. The bailouts reflect the failure not of more and more trust but of the internal market to meet national and regional healthcare needs.
CCG's are under a legislative cosh to seek competitive tenders from anyone with some sort of presence in the healthcare market. Those in favour of the use of private contractors often talk as if a tender is the same as the delivery of the service. What evidence is there that commercial contracts benefit the NHS. The Stevenage Surgicentre was so bad that Carillion handed to the local trust with a £2m bill and lets not forget the largest privatisation of all - Connecting for Health.
An unqualified failure of CCG's and the also reported widespread bailout - a failure of the internal market. You could also ask what local Healthwatch's are doing to highlight a problem that relates to patient interests. Time for a rethink?
Richard Russell - you forgot one thing that in house NHS services cannot do - walk away when things go belly up like the failed Carillion Surgicentre in Stevenage. The local trust ended up with a £2M bill when it was obliged to take over and Carillion were compensated £ 6M for failure. Not the only example. Let's have evidence based private sector performance.
Anon 1:40 - Private contractors are vested and pocketed interests by definition.
The threat of privatisation through obligatory competitive tendering is real and backed by S 75 (SI 500/2013). This places the requirement on CCG's to justify why they do not expose services to competitive tendering. It is not as though privatisation has been a reliable success. Let's consider the biggest privatisation - Connecting for Health where the ICT development processes were entirely privatised with a budget of £13bn but, with minority exceptions, is generally judged as a failure. I could go on.