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NHS private sector deals scrapped NHS private sector deals scrapped
(9 minutes later)
The government is rowing back on its use of the private sector for NHS care by scrapping a series of projects.The government is rowing back on its use of the private sector for NHS care by scrapping a series of projects.
The Department of Health has announced that six clinics in the pipeline will not go ahead, while another scheme already up and running will fold.The Department of Health has announced that six clinics in the pipeline will not go ahead, while another scheme already up and running will fold.
In recent years, ministers in England have signed deals with private firms to provide NHS treatment and diagnostic centres in a bid to cut waiting times.In recent years, ministers in England have signed deals with private firms to provide NHS treatment and diagnostic centres in a bid to cut waiting times.
But ministers have now said some of them do not provide value for money.But ministers have now said some of them do not provide value for money.
It comes after Health Secretary Alan Johnson announced in July there would be no third wave of independent sector treatment centres.It comes after Health Secretary Alan Johnson announced in July there would be no third wave of independent sector treatment centres.
Over 60 deals were drawn up in the first two waves to provide minor operations and limited diagnostics, such as scans.Over 60 deals were drawn up in the first two waves to provide minor operations and limited diagnostics, such as scans.
SCHEMES TO BE SCRAPPED North East Yorkshire and North Lincolnshire Referral Assessment Diagnostics and Treatment ServiceNorth East DiagnosticsSouth East DiagnosticsNorfolk, Suffolk and Cambridge ElectivesCumbria, and Lancashire Clinical Assessment and Treatment ServicesLymington element of the Hampshire and Isle of Wight ElectivesSCHEMES TO BE SCRAPPED North East Yorkshire and North Lincolnshire Referral Assessment Diagnostics and Treatment ServiceNorth East DiagnosticsSouth East DiagnosticsNorfolk, Suffolk and Cambridge ElectivesCumbria, and Lancashire Clinical Assessment and Treatment ServicesLymington element of the Hampshire and Isle of Wight Electives
Mr Johnson had already said two contracts with Atos Origin to provide diagnostic services in the north west and south west would not go-ahead.Mr Johnson had already said two contracts with Atos Origin to provide diagnostic services in the north west and south west would not go-ahead.
He has now added another six schemes to that list, potentially costing the government millions of pounds.He has now added another six schemes to that list, potentially costing the government millions of pounds.
So far, wave two has cost £84m on things such as legal fees and procurement costs, but some of this was spent on the schemes that have been given the go-ahead.So far, wave two has cost £84m on things such as legal fees and procurement costs, but some of this was spent on the schemes that have been given the go-ahead.
Mr Johnson has also decided to pull the plug on one scheme, Care UK's mobile diagnostic service for the West Midlands, that is already in operation.Mr Johnson has also decided to pull the plug on one scheme, Care UK's mobile diagnostic service for the West Midlands, that is already in operation.
The government is likely to have to pay compensation to do this, but the details of the arrangements are "commercially sensitive".The government is likely to have to pay compensation to do this, but the details of the arrangements are "commercially sensitive".
The service was launched in June to provide nearly 200,000 diagnostic procedures a year.The service was launched in June to provide nearly 200,000 diagnostic procedures a year.
But the health secretary said the deal had to be terminated because of "unacceptably low rates of use".But the health secretary said the deal had to be terminated because of "unacceptably low rates of use".
He said: "The reduction in the overall size of the procurement does not represent a change in policy."He said: "The reduction in the overall size of the procurement does not represent a change in policy."
'Instrumental''Instrumental'
He also defended the government's use of the private sector.He also defended the government's use of the private sector.
"New providers have been instrumental in helping the NHS slash waiting times - from over 18 months 10 years ago to a matter of weeks in some places now.""New providers have been instrumental in helping the NHS slash waiting times - from over 18 months 10 years ago to a matter of weeks in some places now."
As well as announcing the scrapping of the projects, Mr Johnson also gave the green light to 10 others, which will now join nearly 40 private clinics that are already open.As well as announcing the scrapping of the projects, Mr Johnson also gave the green light to 10 others, which will now join nearly 40 private clinics that are already open.
We were always against these schemes as we knew the NHS had enough capacity to see the patients Alex Nunns, of Keep Our NHS PublicWe were always against these schemes as we knew the NHS had enough capacity to see the patients Alex Nunns, of Keep Our NHS Public
There are still a series of contracts to sign off from wave two and while there is to be no wave three, local NHS bosses can still ask for private sector centres if they want.There are still a series of contracts to sign off from wave two and while there is to be no wave three, local NHS bosses can still ask for private sector centres if they want.
Alex Nunns, of the Keep Our NHS Public campaign group, which represents health professionals, unions and patients, said: "The government is rowing back on its use of the private sector.Alex Nunns, of the Keep Our NHS Public campaign group, which represents health professionals, unions and patients, said: "The government is rowing back on its use of the private sector.
"We were always against these schemes as we knew the NHS had enough capacity to see the patients."We were always against these schemes as we knew the NHS had enough capacity to see the patients.
"It is just a shame it is going to cost the taxpayer a lot of money.""It is just a shame it is going to cost the taxpayer a lot of money."
Lib Dem health spokesman Norman Lamb said: "This is yet more evidence of government flip-flopping creating confusion in the health service."Lib Dem health spokesman Norman Lamb said: "This is yet more evidence of government flip-flopping creating confusion in the health service."
Shadow health minister Stephen O?Brien added ministers had demonstrated incompetence. Shadow health minister Stephen O'Brien added ministers had demonstrated incompetence.
But Richard Jones, chairman of the NHS Partners Network, an alliance of private sector health providers, said: "We are naturally disappointed that the scale of the next stage of this programme is going to be smaller than originally planned."But Richard Jones, chairman of the NHS Partners Network, an alliance of private sector health providers, said: "We are naturally disappointed that the scale of the next stage of this programme is going to be smaller than originally planned."