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The failings of private healthcare: Hinchingbrooke Hospital Watch

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    Circle Holdings, a private firm, is pulling out of a contract to run Hinchingbrooke Hospital in Cambridgeshire. They basically cited an inability to make profit.

    BBC, Guardian, Telegraph.

    But private is always better than public right? :tumble:
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    The "private is better than public" thing has always been a very general rule of thumb with many exceptions. Unfortunately the privatise everything "crowd" ignore that and instead treat it like gospel.
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    The case of Circle is emblematic of why tendering out health service provision to private providers in healthcare won't work.

    If the government pays the private provider a fee to then provide services, then if the provider can offer a better (or even same) service as before, then the government is no worse off, and everybody is happy.

    However, the ability of private providers to make money is mostly outside of their control; they obviously can't start charging for most (if any) healthcare services, so there is pretty much no means of increasing revenues - what they get is the fee from the government and that's it, so to make a profit, they have to focus on costs. That's fine if unnecessary costs are cut, and perhaps a bit painful for some staff if wages are reduced, but mostly fine if the level of service stays the same.

    It becomes problematic for the patients/taxpayer when the quality of service declines as a result (as it did in the case of Hinchigbrooke), and problematic for everybody including the provider when costs rise because of increased usage (which the provider can't influence), which is what happened.
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    This is totally obscene! NHS funds going to people who need them? What the hell!

    What about me and my well to do pals? We where promised Bentley's, bonus packages and a free 2nd property. This shouldn't be happening!

    Perhaps it would be wise to cook the books and deny cancer patients treatment or deny expensive medication to the commoners. That will create some excess and make this venture profitable.

    I'm going to have words with the Conservative party right this instance.




    - Some Tory.

    Making profit out of everyone else's misery.

    Remember to vote Conservative May 2015.
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    What has to be considered here is that, from the start, losses were expected early on, profits late in the contract. But beyond that, it's a single data point, if they had improved the quality of care significantly with half the expense would you be praising it saying "privatise it all"? Doubt it, I expect you would be doing exactly what I am now, saying "but it's only one data point"
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    Oh, and you additionally get that huge sums of money were poured into improving the hospital and patient satisfaction surged.
    They inherited huge debts and a running deficit, so is it really any surprise that continued? As said, it was expected to turn a profit later in the contract
    The waiting times were decreased, even if they didn't meet the 95% target, and still better than the vast majority of hospitals nationally
    Accusations have been made about the CQC team that filed the report, saying that they were, in effect, paid off by the Labour Party to give an unfair report, obviously for political reasons
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    The OP's criticism would only really make sense if the state hospitals were making profits while private hospitals were not. The reality is that many hospitals are loss making (if you can call taxpayer funded hospitals profitable at all) and that averages are a much better way of assessing this.

    That being said I do think contracting out entire hospitals is stupid. Government controls far too much in terms of revenue streams and costs. Of course contracting individual services is a good idea though and the NHS today is far superior to 20 years ago before Blair implemented his market reforms.
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    (Original post by illegaltobepoor)
    I'm going to have words with the Conservative party right this instance.
    Possibly best stay with Labour since they put it out for Privitisation...
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    (Original post by Jammy Duel)
    What has to be considered here is that, from the start, losses were expected early on, profits late in the contract. But beyond that, it's a single data point, if they had improved the quality of care significantly with half the expense would you be praising it saying "privatise it all"? Doubt it, I expect you would be doing exactly what I am now, saying "but it's only one data point"
    Why don't Circle see it that way?
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    Ruddock was the boss of the Lansdowne Partners hedge fund until late 2013 and he remains a major shareholder in the company. He has made over £600,000 in donations to the Tory party. Lansdowne Partnerships is a major shareholder (29%) in Circle Health

    Crispin Oday has donated over £222,000 to the Tory party - He is the boss of Oday Asset Management which holds a 21% stake in Circle Health.

    Martyn Arbib has donated over £478,000 to the Tory party - He is the founder of Invesco Perpetual which holds a 22% stake in Circle Health.

    Michael Platt has donated £75,000 to the Tory party - He is the founder of Blue Crest Capital which holds a 7% stake in Circle Health.
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    A failed privatisation is primarily a failure of the state, which is to say it is not a fault of the market. This is a private-public partnership, not a product of market forces.

    This failure does not mean that private business would not be able to most efficiently deliver healthcare in a free market.
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    (Original post by Jammy Duel)
    Accusations have been made about the CQC team that filed the report, saying that they were, in effect, paid off by the Labour Party to give an unfair report, obviously for political reasons
    Sounds a little tin foil hat.
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    (Original post by n00)
    Sounds a little tin foil hat.
    I'm just saying what I was told

    Posted from TSR Mobile
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    (Original post by Jammy Duel)
    I'm just saying what I was told

    Posted from TSR Mobile
    I hope you had your hat on.
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    (Original post by n00)
    Why don't Circle see it that way?
    Because the left has been trying to force them out from the start. There was no way after the report that they really had any hope of staying. I really would not be surprised if He hospital goes back downhill over the next 5 years..

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    (Original post by illegaltobepoor)
    This is totally obscene! NHS funds going to people who need them? What the hell!

    What about me and my well to do pals? We where promised Bentley's, bonus packages and a free 2nd property. This shouldn't be happening!

    Perhaps it would be wise to cook the books and deny cancer patients treatment or deny expensive medication to the commoners. That will create some excess and make this venture profitable.

    I'm going to have words with the Conservative party right this instance.




    - Some Tory.

    Making profit out of everyone else's misery.

    Remember to vote Conservative May 2015.
    I thought Labour awarded the private contract for Hinchingbrooke?
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    (Original post by Jammy Duel)
    Because the left has been trying to force them out from the start. There was no way after the report that they really had any hope of staying.
    So it is all down to a conspiracy?
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    (Original post by Chief Wiggum)
    I thought Labour awarded the private contract for Hinchingbrooke?
    Nar, as Quady says, they put it out for privitisation, the contract was awarded under this government,which just so happened to go in favour of a few big Tory donors.
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    (Original post by n00)
    Nar, as Quady says, they put it out for privitisation, the contract was awarded under this government,which just so happened to go in favour of a few big Tory donors.
    Ah thanks, I was obviously mistaken.
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    (Original post by n00)
    So it is all down to a conspiracy?
    No more of a conspiracy than "they got the contract coz Tory donors".
    It's hardly a conspiracy that there was massive opposition coz stupid slippery slope arguments.
    It's hardly a conspiracy that they were under intense scrutiny as a consequence.
    It's hardly a conspiracy that, since they didn't instantly balance the books, nor did they instantly reach A&E targets, people, as demonstrated in this thread, saw it as evidence that private operation sucks.
    It's hardly a conspiracy that people wanted it back under state control.
    It's hardly a conspiracy that they were under pressure to be "sacked" or pull out.

    So why is it a massive conspiracy when, while already under pressure to give up, a damning report is published and they pull out?
 
 
 
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