Health reforms could plunge NHS into the red, warn MPs

By DANIEL MARTIN FOR THE DAILY MAIL
Updated:

There is a significant risk that the Government’s controversial health reforms could harm patient care and plunge the NHS into the red, MPs warned last night.

The wholesale reorganisation of the NHS - the biggest in its history - could  distract staff from the key responsibility of making sure healthcare is safe.

MPs said the NHS reorganisation could distract staff from making sure healthcare is safe

MPs said the NHS reorganisation could distract staff from making sure healthcare is safe

In a critical report, the MPs on the Public Accounts Committee say the costs of  the reorganisation could turn out to be muich higher than the Department of  Health estimates - meaning frontline services could have to be slashed, or  trusts go into debt.

There is also the danger that the NHS will have to pay out far more than first  thought in redundancy costs, if new GP commissioning boards refuse to take on  many managers from primary care trusts.

SNOW BLAMED FOR RISE IN NHS WAITING TIMES

Health Secretary Andrew Lansley has blamed the 'severe winter' for an increase in NHS waiting times.

He told MPs that average hospital waiting times were 'stable' and a snapshot of figures in February was 'not a fair comparison to be made'.

New figures released last week by health charity The King's Fund showed that NHS waiting times were at their highest level for three years, with nearly 15% of hospital inpatients waiting more than 18 weeks in February.

The charity pointed to a steady increase in waiting times for hospital treatment since the Government relaxed the 18-week target in June 2010.

At Commons question time, Mr Lansley said: 'I think people in the NHS might reasonably say that to choose February 2011, in the immediate wake of a severe winter, with the largest snow outbreak since 1999 - with critical care beds being occupied meaning that patients for elective operations could not be admitted - was not a fair comparison to be made.'

The report is yet another blow to Health Secretary Andrew Lansley, whose  reforms have proved one of the most divisive issues between the Tory and Lib  Dem parts of the Coalition.

The controversial plans include handing most of the NHS budget to new  commissioning boards run by GPs.

Mr Lansley has already been humiliated after being ordered by the Prime  Minister to delay his reforms and go back to patients and NHS staff to consult  them. 

And one of Nick Clegg’s closest advisors, Norman Lamb, has hinted he could quit  unless implementation of the package is slowed down.

Today, MrClegg and Lib Dem health minister Paul Burstow will hold a  ‘listening event’ with patients to ask their view on the NHS reforms.

The PAC report warns of further dangers – such as a threat to patient care and  the financial balance of the Health Service.

Margaret Hodge, chairman of the Committee of Public Accounts, said: ‘The  Department of Health acknowledged the risks associated with this radical  shake-up of the NHS.

‘Whilst the reforms could complement the imperative of achieving £20billion efficiency gains by 2014/15, the reorganisation might also distract those  responsible for making the savings while safeguarding standards of patient care.

‘Furthermore, if the department's estimate of the one-off costs associated with  reorganisation turns out to have been too low, it will make the challenge of  achieving savings for reinvestment even tougher.’

The report warned that Department of Health estimates for the cost of the  reorganisation - £1.4billion – depends on GP commissioning boards keeping up to  70 per cent of managers currently based in PCTs.

‘The department has no control over such decisions or the resultant redundancy  costs,’ the MPs warned.

‘The department needs to regularly review the emerging  costs of the transition and have contingency arrangements in place if costs exceed expectation.’

A young boy at a demonstration by nurses, midwives and health workers. Many are unhappy about the government's Health and Social Care Bill

A young boy at a demonstration by nurses, midwives and health workers. Many are unhappy about the government's Health and Social Care Bill

Christina McAnea, head of health at the public sector union Unison, said:  ‘Another week, another report warns that the Health and Social Care Bill poses  a real danger to patients.

‘The NHS and its staff have always adapted to change, but this Bill takes a  wrecking ball to the NHS as we know it.’

Responding to the report, Mr Lansley said: ‘The efficiency challenge and our  reforms are inextricably linked. Our reforms help the NHS make savings, because  getting rid of tiers of bureaucracy will mean an extra £1.7 billion each year  to reinvest in patient care.

‘And if we don't give doctors and nurses the power to make decisions for their  patients, then quality of care will suffer.’ 

Labour’s health spokesman John Healey said: ‘In recent weeks, NHS staff and  independent health bodies like the Kings Fund have raised concerns about deep  pressures on the health service. 

‘This committee report confirms the high risk the government is taking by  forcing the NHS through a massive top down reorganisation at the same time as  demanding unprecedented savings.'

‘As Labour has been warning for some time, David Cameron’s plans for the NHS  will cause problems for patients services, have serious implications for the  future of some hospitals, and make the major health challenges that we’re  facing as a country much harder to tackle.’

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