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To what extent has the NHS been subject to ‘creeping privatisation’ ?

It can be argued that the NHS has been subject to creeping privatisation which is potentially provocative. New Labour’s point of view however, is that it is a modernising agenda i.e. a ‘Third Way’ where both the private and public sector are being brought together in the form of a partnership in order to improve the quality of the health service. The original principles will stay largely in tact for example, it will be free at the point of delivery and paid for through taxation. However, traditional labour and the trade union have argued that the NHS is being subject to creeping privatisation. Bit by bit, the nature of the health service is being changed beyond and compared to how it was originally run. Therefore, the NHS is being fundamentally altered in order to suit the needs of New Labour’s modernisation agenda.

There are four areas by which the NHS is being subject to privatisation:

Firstly the idea of Private Sector Initiatives (PFI’s). This was originally introduced by the Conservatives and cynically criticised by Labour in opposition however, in ’97 when Labour was elected they extended the programme. The treasury saw PFI’s as a good way to raise money for NHS hospitals. The rationale behind this is that it would prevent an increase in public expenditure as it would not be paid for through tax revenue. PFI would be used in order too borrow money and fund new investments therefore, it would fit into Brown’s ‘Golden Rule’ PFI also represents the ultimate ‘buy now pay later’ scheme, therefore when the Government borrows money, they would be paying it back gradually like a mortgage. PFI used to fund capital investments. It has been argued by Brown that PFI’s is the ‘only way to raise money to fund new hospitals’ however, this is seen not to be the case at it can be paid for through taxation.

Secondly, foundation hospitals has led to ‘creeping privatisation’ Even though they are not private sector, there has been increased private sector involvement i.e. the contracting of service (not medical, but in terms of catering and cleaning) Foundation hospitals are also able to manage their own assets and can borrow money from financial resources (the private sector) They also have some scope over pay rates in relation to their area. However, Brown is not too keen on this as it takes power away from the treasury, and therefore makes it harder to control levels of expenditure.

Thirdly, there has been an increased role of the private sector in healthcare provision as NHS patients are treated in private hospitals due to reduced waiting times. This can therefore, be argued as fundamentally altering the way in which the NHS operates as it will become more personalised and individualised for the few. This contradicts the idea of universal treatment as it won’t fit the need of all patients.

Fourthly, there have been private companies taking over failing hospital trusts. Therefore, if they run the hospital they will be more likely to being in private sector methods. Labour MP’s were shocked to hear that the Good Hope hospital in the West-midlands was being taking over by a private company (more than 60 rebels voted against the idea) David Hinchcliffe, the labour chairman of the Common’s health select committee announced that there is a fundamental difference between the public sector which is based much more on collectivisation and the private sector which is based on a ‘dog eat dog’ approach and believes that a private company is less likely to offer a better service than those who manage the NHS.

Comments

These notes are aimed at people studying for Edexcel A Level Politics, unit 4.

Originally submitted by jERRY1 on TSR Forums.