Government has ignored evidence on ISTCs, says BMA - 09 Apr 08

• Extract from : http://tinyurl.com/6s3kgn

Despite considerable evidence showing that independent sector treatment centres (ISTCs) do not offer value for money and may destabilise existing local health services, the BMA is dismayed to learn that the government has today (9/4/08) given the go-ahead to some of the remaining private sector schemes in England.

Dr Jonathan Fielden, chairman of the BMA’s consultants committee said: “There has been substantial evidence showing that ISTCs do not offer value for money and can destabilise local health services, yet the government has ignored the evidence and proceeded with its delayed programme.

• “Many of the existing schemes have not delivered on their contracts because the need for extra capacity was poorly assessed or quality was questionable. Now the NHS finds itself locked into lengthy deals, which are paid for regardless of activity, with later expensive ‘buy-back’ schemes for unused buildings.
• “We are disappointed that the government has still not learnt that there are better ways of spending NHS money and would urge local health trusts to think very carefully before signing deals with the private sector in the future. The independent sector should only be used when the NHS cannot provide the service locally, quality can be assured, and when it is truly value for money."

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DH - Moving forward with Health Reform - More Independent Sector Treatment Centre Schemes

• Extract from : http://tinyurl.com/4ldttw

More people are set to benefit from faster treatment and greater choice, Health Minister Ben Bradshaw announced today.

The Department of Health has announced that three more Independent Sector Treatment Centre (ISTC) Schemes have been given the go ahead. The schemes are expected to provide over 1.5 million contracted procedures and outpatient consultations, including general surgery, orthopaedics, ophthalmology, and diagnostics, thanks to an investment of £385m over the next seven years.

Following a review of Phase 2 of the ISTC programme, two schemes in Greater Manchester and one in Hampshire and the Isle of Wight have been approved by the Department of Health and HM Treasury and will now go forward to financial close. This will bring the total number of schemes in Phase 2 to ten - seven of which have already started to deliver services of patients. Final proposals for the Avon, Gloucestershire and Wiltshire Electives scheme are now being considered and we expect to announce a decision on this shortly.

The Department of Health also confirmed that independent sector provision will in future be procured locally rather than centrally, and announced that the three remaining schemes will be taken forward by the NHS to complete the review and negotiations with providers, with the Department of Health and HM Treasury concluding decisions by the end of November.

Health Minister Ben Bradshaw said:

• "The independent sector is providing NHS patients with fast access to high quality treatment and diagnostic services, offering greater choice, driving down waiting times and galvanising the NHS to raise its game. One million procedures have now been carried out by a range of independent sector providers and these three new schemes alone will provide over 1.5 million procedures to patients in Greater Manchester and Hampshire and the Isle of Wight.
• "We are committed to independent sector involvement in the NHS where it meets local needs, offers value for money and benefits local patients. It is right that in future the local NHS will commission independent sector providers, to ensure faster procurement of services that reflect local needs."

NHS Chief Executive David Nicholson said:

• "The independent sector continues to play an important role in delivering services for the NHS, helping to ensure that we carry on improving our ability to provide faster and more efficient services - which is what our patients expect."

The news that the NHS would lead on future procurements was welcomed by independent sector providers. David Highton of Clinicenta said: "We welcome the enhanced local ownership of the schemes that this development will bring and believe we can deliver a service that will exceed NHS sponsors expectations".

To further support this, Secretary of State for Health Alan Johnson announced last year the establishment of an Independent Sector Procurement Forum to advise the Department of Health and NHS on policies and practices related to local healthcare procurement. The inaugural meeting of the Forum takes place this month and will provide an effective mechanism for independent and third sector providers to support and help improve effectiveness in local procurement.

Notes:

1. The schemes that will go forward to financial close are:
- Hampshire and Isle of Wight Electives (Southampton element)
- Greater Manchester (A) Clinical Assessment and Treatment Services
- Greater Manchester (B) Clinical Assessment and Treatment Services

Final proposals for the Avon, Gloucestershire and Wiltshire Electives scheme are now being considered and we expect to announce a decision on this shortly.

2. The three remaining schemes that will be taken forward by the NHS are:
- London North Electives
- Essex Electives
- Hertfordshire Electives

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