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Amicus says privatisation is plunging NHS further into debt

Monday 12th June 2006
 
Amicus says internal market reforms are costing the NHS hundreds of thousands of pounds.
 
As well as causing PCT deficits, Amicus say that teams of management consultants parachuted in to advise PCTs on how to reduce them are being employed at prohibitive cost.     
 
Amicus say that the irony is that the so-called ‘Turnaround teams’ are being employed at a cost of thousands of pounds per day and their recommendations mostly involve the shedding of vital NHS employees jobs.
 
Whipps Cross Hospital in East London which has had to cut jobs and beds in an effort to reduce its’ £24m deficit  has appointed a ‘Turnaround’ consultant at a cost of £1,200 per day on how best to do it.  This amounts to an incredible £150,000 over the term of a six month contract – more than eight times the annual salary of a newly qualified nurse - and astonishingly the Trust made public the news of the appointment on the same day it announced the loss of 400 jobs and a 22-bed ward.
 
Other examples from around the country include a Turanround consultant being employed for an initial three month contract at Scarborough and North East Yorkshire NHS Trust at a cost of £15,000 in and a team at Cambridge City and South Cambridgeshire Primary Care Trusts costing £300,000.
 
Amicus has learnt that Turnaround teams have been operating in 26 PCTs nationwide. Approximately half of these have already reported and all involve cuts and job losses.  
 
Amicus’ General Secretary, Derek Simpson, said: “This is political dogma gone mad. We have to combat the philosophy that private is best. Not only is private provision detrimental to patients it is costing taxpayers millions of pounds. As the so-called ‘turnaround’ experience demonstrates so vividly, privatisation  does not, and cannot, provide value for money.
 
“Not only has the failed internal market experience been the instigator of the Trust’s existing deficits, the ‘private’ remedy is helping to plunge struggling PCTs even further into debt. There is no benefit is felt by staff, patients, or taxpayers.”
 
Amicus’ Assistant General Secretary with responsibility for the health sector,
Gail Cartmail, said: “The biggest tragedy in all of this is that the morale of health professionals is at an all time low.
 
“Amicus is working with them to push the government to find solutions but comments such as those from the Chancellor that public sector pay should be subject to a freeze over the coming years combined with news of exorbitant pay for external consultants does not help the situation.”
 
Amicus has also been lobbying against proposals made in the Health White Paper that it claims will result in a dangerous fragmentation and privatisation of health visitors. Amicus is also joining with other trade unions to submit anti-privatisation in the public sector motions at the forthcoming TUC and Labour Party conferences. 
 
Note to editors
Health Secretary, Patricia Hewitt, will address Amicus conference at the Spa Conference Centre in Scarborough at 11.30 am on Monday 12th June.
 
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For further information please contact Catherine Bithell on 020 7420 8909 or 07958 473 224