Category Archives: Guest

Humanity has long been squeesed out of the mental health services, and now from the general medical service…

Kids are more and more not attending schools. Home learning is becoming more common. Should the state address this with an annual curriculum for each year group and each subject on line? Does out handling of asylum seekers reflect our historic treatment of the mentally ill? Would classes in citizenship help? We allow adverts encouraging gambling, alcohol and vaping – all the vices – on sporting heroes. A retired psychiatrist makes a plea for not introducing FCS (Family and consumer services) into every school, but instead to use resources to facilitate resilience.
On the closure of asylums and letting kids grow up:
My great uncle was superintendent of Derby County Asylum AKA Derbyshire Mental Hospital from 1935 until 1940. My only experience of asylums was working at Macclesfield Asylum in 1994, whilst it was being run down (it is now an executive housing estate as is often the case).
But yes, their closure was not the great liberation promised. The report of the closure of the Friern Hospital in London even managed to spin a positive outcome out of the finding that death rates in the discharged (assessed as well enough to go) were not worse than the death rates of those who remained (assessed as too unwell to survive in the community).
As a psychiatrist I spent 29 years battling the political decimation of mental health care, mainly in Manchester. Part of that was militant nursing colleagues who were antipsychiatry, and antidoctor. They led the “New Ways of Working” debacle of the 2000s, and its resurgence in the last 10 years. In the end I had enough. That the same deprofessionalism of mental health care is now extending to general medicine has finally woken my colleagues up.
It should be said that the asylum building project of the mid-1800s was not an upsurge of altruism on the part of the establishment. Edward Oxford attempted to assassinate Queen Victoria in 1840. John William Bean attempted to assassinate Victoria in 1842. Daniel M’Naghten attempted to assassinate the Prime minister in 1843. They were all found to be insane. The County Asylums Act 1845 was to remedy the failure to lock up their ilk. Why do the rich have to feel threatened before they do something, I wonder?
The principles are clear, and rooted in humanity. Unfortunately a lot of humanity has been squeezed out of mental health services, and as a knock on effect, from the community. We need a mental health grouping to advise, but unfortunately in Wales it is too dominated by professional interests. A psychologist in every school FCS (Family and consumer services) ? Last thing we need. How not to instil resilience in kids.

Government has a health and social care crisis causing paralysis and myopia. Can Deliberative Democracy (DD) provide the cure?


Vicky Moller, chair of Grwp Resilience, Pembrokeshire, Wales, writes clearly her support for a new way of making key health decisions . When the state of Oregon voted on openly rationing health services, without a “Citizens Jury”, they excluded the treatment of premature babies under 28 weeks. Uninformed democracy is not a valid methodology, but informed debate avoids pitfalls and unpalatable decisions. The Oregon experiment began after Coby Howard’s case shocked the state of Oregon in 1987. He was a 7-year-old boy on Medicaid who needed a bone marrow transplant, which was no longer covered under the state’s scheme… NHSreality is writing to the BMA West Wales and Cardiff, to ask for their views on this suggestion as i feel that both strategic and operational decisions could benefit from this process. However, the pace of advance in technology might be so fast that they need to be ongoing/continuos.

Government has a health and care crisis causing paralysis and myopia

Can Deliberative Democracy (DD) provide the cure?

Deliberative Democracy (DD) is a generic term covering Citizens Assemblies, juries, panels and many other forms adopted in different countries.

The commonality is that government level decisions, recommendations or suggestions are made by a cross section of the demography affected by the decision, through informed deliberation aiming for consensus. It is therefore different to a referendum, consultation or petition and different to representative democracy as we know it.

Complete instructions on the classical form – Citizens Assemblies.

It is relatively rare in the UK, but has a substantial track record globally.

This BBC documentary tracks a 2020 Citizens Assembly on climate policy for the UK. It illustrates what happens at every deliberative democracy event: the participants rise to the occasion, produce balanced but bold proposals and their appetite for civic engagement is permanently improved. It is recommended viewing for insight into the process.

Is it the right approach to resolve some of the knotty problems facing the NHSs?

There are decisions that governments fail to make well. These may be where:

  • The public is deeply divided
  • The issue is emotive
  • Short term sacrifice is needed for long term gain
  • Government lacks the expertise and insight.

This is where DD comes into its own.

The challenges facing the NHSs are emotive, government is intimidated and possibly lacks expertise.  Should we trail an informal version of DD to test its efficacy?

If we should, we need the health professions to shape the process.

The process has a preparatory and follow up phase and three event phases:

Preparatory :  Enlisting governmental involvement (even if only an observer), framing the questions to consider, identifying the experts and stake holders and the facilitators, publicity to ensure impact, enrolling participants who reflect the demography impacted.

Three event phases

Input where the ethos and purpose is introduced. Information from all sides of an issue is presented by stake holders and experts

Deliberation where questioning, listening and discussion build agreement.  Usually 80+%  agreement is achieved.

Outputs where the decisions, recommendations etc are framed. At a recent assembly in France, the legislators joined to frame the proposals in legal language to lay before parliament to vote into law.

Follow up

Disseminating the outputs and publicity for the process

Pursuing government commitments and meetings to consider adopting the outputs

Informing and involving event participants to promote learning.

Although proper DD is commissioned by a level of government (local, national, international) there are informal versions which can be valuable.

Grwp Resilience, a Wales based organisation has experience in running informal DD which we call Trafodwn (Welsh for ‘Let us discuss’) Link to a talk on one – see Peoples Assembly in Wales

Trafodwn are shorter – 2.5 to 6 hours, have taken place  in different counties and cities, without cost or paid staff, are not commissioned by government or part of their formal decision making, and the attendees are self selected from balanced target audiences rather than scientifically stratified and randomly selected. Despite this they had some of the positive outcomes of the proper version. They:

  • Brought sectors with conflicting views together to learn from specialists and to build agreement
  • Showed people from a variety of backgrounds their own capacity to find creative solutions together
  • Had some influence on politicians and Welsh government, providing a mandate for bolder decisions and allowing them to take part in a different democratic process without us and them division.
  • Gave participants and others a new appetite for democratic engagement.
  • Showed how our current democratic processes are outdated, mired in conflict and dysfunctional, and that there are alternatives that work.

Grwp Resilience offers to help you to set up a Trafodwn or a formal government or health board commissioned DD event such as a citizens jury in Wales.. This would be your event, we would act as enablers and facilitators but we can ensure it is effective, well publicised and untangles some of the health service’s knotty problems.

Manpower planning failure – Building a new hospital in a deprived, coastal, rural, and left behind area after rationing training places for decades – reflects the Hobson’s choice in front of us all.. With burnout of many staff at risk whatever..

Rationing needs to be explicit; just like SAGE. Too many committees in disunited health service..

Is the NHS going to break in 2017? It is already – just that some may not know it

Number of doctors retiring early triples: the meltdown of experience resulting from laughable manpower planning.

2019: Despite increases in the number of training posts and a decline in unfilled places, the latest figures show that the rate of GPs leaving the profession continues to outpace the numbers being recruited. Caring cannot be done by machines.

Citizens’ Jury | involve.org.uk

Citizens Juries – Citizens Juries c.i.c. Gloucestershire

NIHR Greater Manchester Patient Safety Translational Research Centre (Greater Manchester PSTRC)

Oregon’s Experiment with Prioritizing Public Health Care 2011 …

Rationing medical care: rhetoric and reality in the Oregon 2001 …

The cost of curing just one congenital disease…. The pace of advance of technology is faster than any government can afford

“How far we are from the possibility of rational debate on it’s (the NHS) future..”

I have included Clare as a “guest” as she says it all. She is partner to someone else who almost certainly thinks the same – as almost 70% of the medical professions do. There will always be a minority of “deniers”, but the services in the UK are meant to be for us all. Instead they are 4, and only for those living near tertiary centres and in affluent neighbourhoods. The regressive nature of this pandemic should let us reorganise the societies we live in.. Lets hope.. NHSreality wonders if talking about change is contagious in itself, and this is why the politicians wont do other than mouth platitudes.

Clare Foges opines in the Times 2nd May 2020: Don’t let faith in the NHS blind us to its faults – We rightly praise the heroism and sacrifice of health workers but must face up to the need to reform a creaking service

The Thursday evening ritual: clappers and cheerers, whoopers and pan-clangers — now curtain-twitchers and snitchers. Last week a woman took to Mumsnet to describe her anguish at being outed as a no-show for her street’s “Clap for carers”. After a rough night with her infant she fell asleep early, thus failing to turn up on her doorstep. A serious error. One noble-hearted neighbour took to the community Facebook group to name and shame this NHS traitor, declaring that if she couldn’t spend a minute showing her appreciation, she and her family did not deserve to use the health service. Laggards beware: get a rainbow up in your front window quick, or expect a brick through it!

It’s right that we applaud NHS staff who risk their own health for others (reader, I am married to one of them). Yet the shaming of this Mumsnetter captures something beyond gratitude to doctors and nurses; a reverence of the organisation itself that has become cult-like. How feverish our nation’s devotion to the NHS has become, and how far we are from the possibility of rational debate on its future once this is all over. Coronavirus may do serious damage to the NHS — not by overwhelming it, but by elevating the institution to such heights in the public’s affection that it is beyond discussion, beyond necessary reform.

The pride has long been fierce, and rightly so. In 1948 a leaflet dropped through millions of doors, wrapping a radical idea in plain language: “Anyone can use it — men, women and children. There are no age limits, and no fees to pay.” Imagine the force of this leaflet in the hands of someone wearied by poverty, a lightning bolt of compassion through the letterbox. In the decades since, as other institutions shrink or shut, we cling to the NHS as evidence of British greatness. It is, as the former chancellor Lord Lawson put it, rather like a religion and we worship with a fervour that surprises those abroad. The homage to the NHS in the opening ceremony of the 2012 Olympics had viewers overseas scratching their heads; one US paper found “the dancing sick-kids salute to the National Health Service . . . more than a bit bizarre.” Meanwhile, we were moist-eyed, thinking of the babies born and bodies mended thanks to strangers in scrubs.

I share the pride but am uneasy with the zealotry. This religion allows no doubters. Criticising the NHS is blasphemy; questioning the way it is run heresy. On the 70th birthday of the NHS a few years ago, a poll found that 77 per cent believed the NHS “should be maintained in its current form” — not, I imagine, because they think the status quo is perfect but because change of any sort has been cast as the slippery slope to destruction, privatisation, and Richard Branson cashing in on your gall bladder removal.

Faced with such devotion — and paranoia — politicians are left with little choice but to mouth platitudes. Those who attempt reform are attacked. Those who propose changes must be secretly plotting to flog our health service. A sensible conversation about improving the NHS is all but impossible.

All this was true before the pandemic. Coronavirus will only deepen the adoration and make rational debate more difficult. Boris Johnson’s rather moving speech after his hospital stint captured the mood: “The NHS is the beating heart of this country; it is the best of this country. It is unconquerable . . . ” His tribute veered between individual NHS workers and the NHS itself, blending the two, and this is part of the problem; if workers are seen as the embodiment of the whole organisation, any criticism of the NHS can be cast as an attack on doctors and nurses, pressing the button of public outrage. Yet it is possible to praise the job health workers are doing, especially now, while questioning whether a system designed in the 1940s is fit for today.

The NHS in its current state is far from the communist catastrophe some critics claim. Care in many fields is excellent. No one is put off treatment by the threat of penury. Yet across 8 of the 12 top causes of death in wealthy countries, such as heart attack, stroke and cancer, our outcomes are worse than average.

When it comes to reforms and where they may take us, the rapacious American system is always held up as the only alternative to ours. But look to Europe. In Germany, which has a compulsory insurance system with access to many private hospitals, treatment is so fast that they don’t bother to collect data on waiting times. In France, the journey from diagnosis to operating theatre is so swift that a couple of years ago, overstretched health services in Kent were sending patients across the Channel for treatment. In Sweden the organisation of care is radically decentralised, with 21 county councils raising 70 per cent of funds.

True, we spend less than these nations, and I would argue that a greater chunk of our GDP should be spent on healthcare. But a sensible conversation about the future of the NHS would go beyond money to explore what works to deliver efficient, fair, life-saving healthcare around the world: allowing more private providers to enter the system; merging health and social care systems; introducing small (and possibly reimbursable) charges for visits to the GP or for minor investigations.

Along with most of Britain I would die in a ditch to preserve a health service that looks after people regardless of how much money they have. But how we pay for, manage and deliver this should be open to debate. If we truly love the NHS, we must be willing to talk about how to improve it.

Update 4th May 2020: The Times letters

Sir, Clare Foges (“Don’t let faith in NHS blind us to its faults”, Comment, May 2) makes the excellent point that we should separate our admiration for the people working in the NHS from the organisation. We must maintain the ability to look critically at it.

The pandemic has drawn the public’s attention to the health services of other countries, and their outcomes, in a way that allows us to make comparisons that would not normally be so visible. Those tempted by the American style have seen the reality of a rich country’s choice not to provide universal healthcare. I am a GP not a health economist, but I am struck by the results from Germany, which emerges looking effective and efficient by way of a compulsory insurance system combined with state funding. The mood of the public is at a peak for accepting changes that will benefit the country as a whole, rather than satisfying one political party. Now is the moment to overhaul the way we pay for health in the UK. We do not need five-year investigations, let’s seize the moment.
Dr Fiona Cornish

Cambridge

Sir, There are lessons to be learnt from the pandemic that will improve healthcare in the future. First, people have acknowledged that the NHS has limited resources. Fewer people are misusing GP and A&E access. Second, the move to telephone calls from GPs and hospital outpatient departments can only reduce costs, save time, increase access and reduce pollution, improving air quality, which will also improve health. There will obviously be times when appointments are necessary. Third, bureaucracy that has hitherto affected death certification has been reduced. This has enabled better use of GPs’ time, allowing them to prioritise treating patients.
Dr Anna Smith

Bampton, Oxfordshire

Sir, The Covid-19 crisis brings an opportunity for real positive change, to reward doctors, nurses and support workers and give British people the quality of health service that most other European countries enjoy. Funding for the NHS is severely limited by the principle of “free for everyone at point of service”, meaning it is entirely funded by the government, which simply cannot generate enough money to fund it properly. The investment by the Blair governments created unsustainable annual deficits. Austerity measures, which specifically excluded the NHS, led to big cuts in other public services. Most European public health services are hybrids. In France, anyone not earning gets free treatment. Those earning get some treatments free but contribute up to 30 per cent for others, which most cover through cheap monthly insurance. The time is right, politically, to say that those who can afford to pay a bit more should do so.
Paul Barnes

L’Horte, France

 

Assessment of differences of survival between countries. We have rationed anaesthetists, and ventilators, as well as hospital beds, for decades..

This is courtesy of a friend. His analysis betrays the British Politicians and Ministers of Health over decades. His Assessment of the differences of survival between countries may be superficial but its worth considering and reflecting.. We have rationed anaesthetists, and ventilators, as well as hospital beds, for decades.. Successive ministers of health should be in the dock giving evidence to the retrospective enquiry. (See below) Remember that in 2015: David Iacobucci reports on the opinion of David Nicholson. We have had at least 5 years warning, and done nothing.

All main political parties’ pledges for NHS will prove inadequate, says former chief executive: BMJ 2015;350:h2081

I’ve been asked why the death rate in Germany is relatively so much lower than the UK and Italy. I think that this might explain it to some extent.

Country Intensive Care beds Care beds with Ventilators Critical care beds per 100,000 population
Germany 28,000 25,000 30.0
France 12,429 5,065 12.0
Italy 7,560 15,000 12.5
UK 4,123 5,000 6.6
US 160,000 34.2

The 5,000 count of UK ventilators includes all of those use in the operating theatres which is why it exceeds the number of Intensive Care beds. Apparently the NHS has just requisitioned 1,200 more from the private sector.

The much lower death rate in Germany might be explained by their far higher availability of Intensive Care Beds and ventilators.

Age alone cannot explain the difference, as the median age of the population in Italy is 45.5 years compared with 47.1 years in Germany!

The other reason for Germany’s lower death rate (to date) seems to be “Test, test, test”.  They have been doing about 23,000 per day. That means that the people in the denominator include far more mildly affected people than in the UK (and I believe in Italy) where the only people being tested have turned up at hospitals with severe symptoms.

Let’s hope all of those companies which have been asked to help make ventilators are pulling out all of the stops.

We know that our scientists and medics are.

Many governments and many ministers of health have made mistakes… They should be candid.

Successive ministers of health are responsible for the nursing shortage. And they are not accountable!!

NHSreality wants scapegoats – and suggests the successive ministers of health (for England). Allyson Pollock might agree..

A 150% increase in patients going private is an indictment of the UK Health Services… Successive health ministers have ensured a thriving private system.

 

Poor state of Welsh health. The experiment with devolution has failed….

Poor state of Welsh health Letter in the Sunday Times 17th December 2019
Labour has announced it will outspend the Tories on the NHS and reduce waiting times. Here in Wales the NHS has been devolved to the Labour–led Welsh assembly since 1999. Waiting-time targets for most elective surgery are twice those in England (36 weeks as opposed to 18) and even then are often exceeded.

The Welsh NHS also performs considerably worse in A&E waiting times, with some health boards even allowing 12-hour waits.
Eleanor London, Penarth, Vale of Glamorgan

Devolution of health to Wales was a mistake?

Wales is bust, and cannot pay for its citizens care. Devolution has failed. This is the thin end of a very large wedge..

The advantages of mutuality are being shunned. Purchasing power in small regions is little. Choices are disappearing.. Hammond is unlikely to help ..

update 11th Jan 2024: BBC News – Cancer: Wales among worst countries for survival, data suggests

Less talk more action on General Practitioners

LESS TALK, MORE ACTION ON GPs – The Sunday Times 17th November 2019
You report that “Tories make more ‘empty promises’ on extra GPs” (News, last week). These will do nothing for the millions of patients who are unable to see their GP because of the recruitment and retention crisis. This is a government that has proven its inability to deliver on its 2015 commitment of recruiting an extra 5,000 GPs.

As GP numbers are falling, we need more than just election soundbites — we need investment in the working conditions and retention of our existing GPs, who have been neglected for the past decade.
Dr Rinesh Parmar, chairman, The Doctors’ Association UK

Reality check-up
While election pledges to deliver more family doctors are encouraging, we must not forget that previous promises have fallen far short and GP numbers have continued to decline. We need meaningful action to keep experienced GPs in the NHS, not least the scrapping of absurd pension regulations that punish doctors for staying in work.

Both main parties say extra GPs will provide millions more appointments, but thousands more doctors are needed just to meet present demands. Politicians owe it to patients to be realistic about what can be delivered.
Dr Richard Vautrey, chairman, BMA GP committee

Those “halcyon” days…

NHS AND PLAYING POLITICS

Sir, Dr Andrew Bamji (letter, Nov 2) asserts that the Blair and Brown Labour governments were truly awful in their handling of the NHS. I wholly concur with his withering assessment but the past nine years of Conservative government have not been the answer. From catastrophic cuts in funding (as a percentage of GDP) to top-down reorganisations of the NHS that we were promised would not happen by David Cameron, we have witnessed a systematic destruction of the NHS by the Conservative Party. The disdain with which Labour treated junior doctors during the modernising medical careers (MMC) fiasco of 2007 was dwarfed by the contempt shown by Jeremy Hunt during 2015-16 and which prompted the first junior doctors’ strike in a generation. Consultants and GPs have not fared better, with brutal taxation policies from 2016 onwards that have prompted mass retirement, decimation of overtime and the worst waiting lists since John Major’s premiership. Many patients are now waiting in more than a year for planned surgery, suffering pain and disability as a direct consequence of this government’s mismanagement. When this is coupled to the abolition of nursing bursaries, perilously low staffing on wards, mental health crisis, and the effects of Brexit on a multicultural and multinational NHS workforce, one can see that this is the worst of times. Dr Bamji should be grateful that he is retired as many of us of left working in the NHS now look back at the Blair-Brown years as halcyon days.
Professor Neil Smart

Consultant colorectal surgeon, Royal Devon & Exeter Hospital

Image result for playing politics cartoon

The Market for health

In a letter to the Times 25th Feb 2019 a consultant exposes the weaknesses of the Internal Market:

Sir, The abolition of competition among NHS hospitals is long overdue (News, Feb 22). The “internal market” introduced within the NHS in 1991 was intended to drive down costs and increase choice, among other things. In fact it was inefficient, costly, resulted in a proliferation of managers and was potentially harmful to patients, as well as many other problems.

Smaller hospitals wanted to introduce money-raising procedures for which they had neither the staff nor equipment, procedures usually performed by larger, more experienced tertiary centres. This resulted in duplication of expensive equipment, inexperienced staff doing procedures for which they did not have enough training and ultimately a risk of patient harm. A few years ago I recall a local colleague telling me that his hospital needed to start a cardiology procedure “to balance the books”.

Fortunately, it has been realised that collaboration is highly preferable to competition. At last the damage started by the internal market is being undone. Patients can be directed to centres that are best at the task in hand, not the cheapest.
Dr David E Ward

Consultant cardiologist (ret’d)
London SE22

NHS plan ‘ends public right to choose hospital’ – A form of rationing well known to Wales

Image result for health market cartoon

Can the NHS be saved? Only with different local and global thinking, and changing the “rules of the game”.

All of us in the caring professions know the answer to this question, and indeed that there is no “N”HS any longer. The Guardian knows the answer….. Iain Robertson Steel, a retired medical director acknowledges the problem (But suggests no answer/solutions), but on 26th April  in the Western Telegraph I suggested a “fourth option” for people in Pembrokeshire.  This last is only for local needs, and a letter suggesting a global rethinking was in the Western Mail 25th Jan 2018 is at the bottom of this post. What can save the 4 health services is not clever reorganisations, but an honest debate on overt rationing, and making it clear to everyone what is not available free, for them. ( Changing the rules of the game )

Image result for rules of the game cartoon

Can the NHS be saved? The Guardian – Dennis Campbell – 

…the Guardian’s health policy editor Denis Campbell spent a day in King’s College hospital in London. He found staff and patients who are devoted to the NHS but who can also clearly see what is needed in order to sustain the service for future generations.

A long-term plan designed to secure the future of NHS England has been delayed once again by Brexit. But as Britain’s health service heads into its annual winter beds crisis, the Guardian’s Denis Campbell visits King’s College hospital in London to find out what staff and patients need for the future – and how much it will cost. 

“The Welsh NHS and social care is a shambles and no longer sustainable or fit for purpose.” Dr Iain Robertson Steel in the Western Telegraph 7th December.

Health service needs to be remodelled Western Mail 25th January 2018

From the perspective of west Wales there is no British health service.

I do not have access or choice to anywhere outside my own rural trust (Hywel Dda) unless the service needed is not available here. Even a second opinion has to be within the same trust.

There are four, and possibly five health services if Manchester is included. The WHO has said it will no longer report on an “NHS”.

The lack of choice, the covert rationing, and the unequal access to tertiary centres, primary care, and palliative care threaten to bring on civil unrest.

A Welsh mutual of three million people cannot offer the same quality of healthcare as one of 60 million. Even if the Welsh Government has tax-raising powers, there are not enough taxable earners to rise above the decline.

We seem to have forgotten the power and improved health outcomes in large mutuals. Since the UK’s health service has to be refashioned, now seems a good time to unify again, and re-establish the same rights across the country.

Increasing taxation to pour more into a holed bucket should not appeal to most taxpayers.

We need a new health insurance system (the original NHS was insurance based) and the caring professions will remain cynical until what replaces “in place of fear”, avoids bringing it back.

Dr Roger Burns

Haverfordwest

Pembrokeshire GP urges a “fourth option”. Western Telegraph 26th April 2018

The finances are in such a mess, that local post code and unexpected rationing is everywhere… The “Rules of the game” need to be changed…..

Changing the rules of the game

Image result for rules of the game cartoon

 

Thank god the Welsh were wise enough to avoid PFI

The collapse of Carillion was foreseen. In May 2013 there was a campaign not to use PFI in Liverpool. The BMJ summarises the history of a tempting short-termism idea, which has made some parts of the country even less well served. It has led to great wealth for the directors and officers of PFI companies as well.

Richard Smith in an editorial in the BMJ opines (BMJ 2018;360:k311 ):  Failure of the private finance initiative

Was predictable and predicted

In 1999 TheBMJ called the private finance initiative (PFI) “perfidious financial idiocy,”1 and in 2017 the Office for Budget Responsibility described it as a “fiscal illusion.”2 Now a data driven report from the National Audit Office shows that PFIs have been more expensive than the use of public financing for the building of hospitals, schools, and other public buildings and has mostly not realised the benefits hoped for.3 Published in the same week as the collapse of Carillion, a large company fulfilling PFI contracts, the report has helped propel private financing and provision of public services high on the political agenda.

The difference between conventional public procurement of new buildings and PFIs lies in the financing. In both cases private contractors do the work, but with PFIs the money comes from the private sector. The public sector then pays back the private sector over some 25-30 years from when the building is delivered. The UK has over 700 PFI projects with a capital value of around £60bn (€68bn; $83bn). Annual charges were £10.3bn in 2016-17, and even without any new projects charges will continue into the 2040s and cost £199bn. It’s important to note, however, that over the past 20 years the contribution of PFI, at around £3bn a year, is relatively small compared with public capital investment of around £50bn a year.3

The main attraction of PFI to the government is that privately raised capital does not add to national debt. Nevertheless, it is paid for from the public purse in the form of annual charges, and the Treasury knew when it launched PFI in 1989 that it would be more expensive because privately raised capital is more expensive than publicly raised capital and carries other costs (insurance and management costs). It hoped, however, that it would achieve value for money through efficiencies and better outcomes. The National Audit Office report dashes those hopes.

Even the National Audit Office does not have access to all the government’s PFI contracts, but its study of a group of schools found that PFI costs are about 40% higher than funding with public money. A study in 2011 by the House of Commons Treasury Committee found that a PFI hospital cost 70% more than a publicly financed one.4 The Treasury disputes these findings.

Save now, pay later

PFI is also attractive to government ministers because there are savings in the early years: the costs come later. The National Audit Office’s study of the schools showed that despite the overall costs being higher, costs were lower for the first 15 years. The Department of Health had greater flexibility in its budget between 1997 and 2009 because the capital investment was greater than the charges, but by 2015 charges were almost £2bn greater than capital investment. This lack of flexibility is much more severe in some NHS trusts, with one trust paying 20% of its turnover in PFI charges.3

The National Audit Office analysed the hoped for benefits to see if they outweighed the extra costs. It found that PFI projects are more often delivered on time and within budget than non-PFI projects but did not find any savings in construction costs. Similarly, it found no evidence of operational efficiencies, and there were higher maintenance costs in PFI hospitals but also higher standards.

Lack of flexibility may prove to be one of the biggest problems with PFI projects lasting 25-30 years. The report describes how Liverpool City Council is paying £4m a year for a school that is empty; overall it will pay £47m for a school that cost £24m to build. Most observers of the NHS recognise the need to shift services from hospitals to the community.5 Inflexible, long term PFIs preserve the domination of hospitals at the expense of community services.

Health authorities and local authorities have, however, now recognised the idiocy and seen through the illusion: between 2002 and 2007 there were an average of 55 PFI deals a year, whereas there was only one in 2016-17. Nevertheless, the public sector will be paying average charges of £7.7bn over the next 25 years, and the National Audit Office concludes that it is difficult to reduce the costs.

Despite the criticism of PFI since its inception, the overall performance of PFI has never been quantified. In the face of higher financing costs and continuing criticism, the Treasury relaunched PFI as PF2 in 2012, but the National Audit Office concludes that it’s not much different—hence the low uptake. Yet the poor state of the nation’s finances means that there may have to be some continuing use of PF2.

The combination of the National Audit Office report and the collapse of Carillion has led to calls to end all use of the private sector for providing public services, but this would probably be a mistake. The Financial Times points out that if there is a market in the service, performance can be easily measured, and the service isn’t integral to the purpose and reputation of government, then outsourcing to the private sector can work.6 Catering meets all three criteria, whereas probation services meet none of them.

The public sector should be smart rather than ideological and avoid the illusion of a “free lunch,” as The BMJ said in 1999.1

Footnotes

  • Competing interest. RS wrote the 1999 editorial on PFI, when he was editor of The BMJ. He worked for UnitedHealth Group, a private company supplying services to the NHS from 2004 to 2015 and still has shares in the company. He is also the chair of Patients Know Best, a private company selling into the NHS. This position is unpaid but RS owns share options (about 1% equity) in the company. He is also a paid consultant for an artificial intelligence company Medial EarlySign, which hopes to sell into the NHS.

 

 

 

English Health Service to reject more PFI – but not the hedge funds!

NHS ‘leaking millions’ in PFI contracts. No PFIs in Wales…. unless GP premises count.

Ending the Blair/Brown short term mania for PFI Hospital Builds

Campaigners urge bosses not to use PFI to build new Royal Liverpool Hospital