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DHL to supply hospital equipment | DHL to supply hospital equipment |
(about 1 hour later) | |
The NHS has struck a deal with German company DHL to privatise the supplying of goods and equipment to hospitals. | The NHS has struck a deal with German company DHL to privatise the supplying of goods and equipment to hospitals. |
From 1 October, DHL - best known for delivering parcels - will supply everything from stationery to bed linen and MRI scanners to English hospitals. | From 1 October, DHL - best known for delivering parcels - will supply everything from stationery to bed linen and MRI scanners to English hospitals. |
The deal is opposed by trade unions and will see 1,700 NHS employees transferred to the private sector. | The deal is opposed by trade unions and will see 1,700 NHS employees transferred to the private sector. |
More than £22bn of orders over 10 years will be affected. The company says it will save the NHS £1bn in that period. | More than £22bn of orders over 10 years will be affected. The company says it will save the NHS £1bn in that period. |
The contract will be officially announced on Tuesday. | The contract will be officially announced on Tuesday. |
DHL is best known for delivering documents and freight, but has evolved into a company that is also involved in logistics and supply chain work on behalf of organisations across the world. | DHL is best known for delivering documents and freight, but has evolved into a company that is also involved in logistics and supply chain work on behalf of organisations across the world. |
Its deal with the NHS is one of many contracts it has as part of its DHL Exel logistics division, which was formed in 2005. | Its deal with the NHS is one of many contracts it has as part of its DHL Exel logistics division, which was formed in 2005. |
Market power | Market power |
DHL Logistics chief executive John Allan told BBC News quality would not be sacrificed to save money. | DHL Logistics chief executive John Allan told BBC News quality would not be sacrificed to save money. |
Staff across the NHS will be watching this privatisation deal, which will be viewed by many as symbolic of what is to come Unison | Staff across the NHS will be watching this privatisation deal, which will be viewed by many as symbolic of what is to come Unison |
"We are hoping to achieve efficiency benefits in buying for the NHS, which they will be able to feed back into patient care. | "We are hoping to achieve efficiency benefits in buying for the NHS, which they will be able to feed back into patient care. |
"But we will be working very closely with clinical specialists - with doctors, with the trusts - to ensure we procure for them precisely the products they want." | "But we will be working very closely with clinical specialists - with doctors, with the trusts - to ensure we procure for them precisely the products they want." |
Some critics fear that DHL may opt for cheaper, inferior products and that the company will have excessive market power which could lead to small manufacturers suffering. | Some critics fear that DHL may opt for cheaper, inferior products and that the company will have excessive market power which could lead to small manufacturers suffering. |
But Mr Allan told BBC Radio 4's Today programme the doctors and trusts would decide which clinical products to buy. | But Mr Allan told BBC Radio 4's Today programme the doctors and trusts would decide which clinical products to buy. |
"Our job then will be simply to get the best possible price we can for the standard of quality they have specified." | "Our job then will be simply to get the best possible price we can for the standard of quality they have specified." |
DHL had "set out to ensure" its former NHS employees' terms and conditions - including pensions - would be "protected", Mr Allan said. | DHL had "set out to ensure" its former NHS employees' terms and conditions - including pensions - would be "protected", Mr Allan said. |
Staff will actually be very positive once they see what it is we have to offer DHL Logistics chief executive John Allan | Staff will actually be very positive once they see what it is we have to offer DHL Logistics chief executive John Allan |
And the company planned to create more than 1,000 extra jobs. | And the company planned to create more than 1,000 extra jobs. |
"Staff will actually be very positive once they see what it is we have to offer," he added. | "Staff will actually be very positive once they see what it is we have to offer," he added. |
The deal is effectively a privatisation of part of NHS Logistics as well as a part of the NHS Purchasing and Supply Agency. | The deal is effectively a privatisation of part of NHS Logistics as well as a part of the NHS Purchasing and Supply Agency. |
The supplier's former chairman David Hall said it had a good performance history and was not a part of the NHS that "needs tinkering with". | The supplier's former chairman David Hall said it had a good performance history and was not a part of the NHS that "needs tinkering with". |
"There are many more important areas that I would have thought would have had the government's attention," he added. | "There are many more important areas that I would have thought would have had the government's attention," he added. |
HAVE YOUR SAY Higher costs for the same level of service Ian Hearn, Reading Send us your comments | HAVE YOUR SAY Higher costs for the same level of service Ian Hearn, Reading Send us your comments |
Hundreds of NHS Logistics workers who are members of Unison are already being balloted by their trade union after it was discovered ministers were considering outsourcing the contract. | Hundreds of NHS Logistics workers who are members of Unison are already being balloted by their trade union after it was discovered ministers were considering outsourcing the contract. |
'Sad day' | 'Sad day' |
The union's head of health, Karen Jennings, said it made "no sense" to break up NHS Logistics. | The union's head of health, Karen Jennings, said it made "no sense" to break up NHS Logistics. |
"This is a very sad day for the NHS," she said. | "This is a very sad day for the NHS," she said. |
"The government has not listened to the workforce or to reason. | "The government has not listened to the workforce or to reason. |
"Staff across the NHS will be watching this privatisation deal, which will be viewed by many as symbolic of what is to come." | "Staff across the NHS will be watching this privatisation deal, which will be viewed by many as symbolic of what is to come." |
Results of the ballot are due to be announced next week. | Results of the ballot are due to be announced next week. |
The GMB union has said it will support members who want to take industrial action. | |
Savings promise | Savings promise |
The move is the biggest example of what some regard as creeping NHS privatisation. | The move is the biggest example of what some regard as creeping NHS privatisation. |
Others include private sector providers taking over doctors surgeries and performing minor operations. | Others include private sector providers taking over doctors surgeries and performing minor operations. |
DHL says it can make savings by reducing the range of products available to hospitals - for example, at the moment hospitals have a choice of 133 different paper staplers to choose from in a catalogue. | DHL says it can make savings by reducing the range of products available to hospitals - for example, at the moment hospitals have a choice of 133 different paper staplers to choose from in a catalogue. |
Goods and services supplied by DHL will include food, bed linen, cleaning products, surgical and medical equipment and stationery. | Goods and services supplied by DHL will include food, bed linen, cleaning products, surgical and medical equipment and stationery. |