Private providers of National Health Service care on Tuesday accused Andy Burnham, the health secretary, of being “completely irresponsible” in rolling back competition by making NHS organisations the “preferred provider” of care.
The health department is due to issue guidance advising that NHS organisations must be given “at least two formal chances” to improve where they are under-performing. Even then, other potential providers should be considered only where the under-performance is “significant”, according to draft guidance agreed with the health service unions.
Where incremental improvements to services are sought, existing staff should be given “at least two” opportunities to supply an acceptable service plan. For new or redesigned services, there should be “early and substantial” engagement with existing staff and providers to help shape any changes. Other potential providers should be engaged. But for some services, clinical issues or safety may warrant an “NHS-only” tender.
By contrast, when a private voluntary sector contract expires, primary care trusts will be expected to tender openly, giving the NHS a fair chance to bid.
The health department on Tuesday insisted policy “has not changed” and the private and voluntary sectors would “continue to make a valued contribution”. But in a letter to Brendan Barber, TUC general secretary, Mr Burnham says the changes will require NHS competition and co-operation rules to be rewritten.
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John Appleby, chief economist at the King’s Fund health think-tank, said the new rules do not close the door on market testing “but the door is now barely ajar”. Unison has welcomed what it sees as “a significant policy shift”. Mike Jackson, its senior national officer for health policy, said: “The key thing now is what primary care trusts do locally”.”
The British Medical Association said it was “a very positive sign” that Mr Burnham was listening to its concerns about increasing commercial involvement in the NHS.
However, the NHS Partners Network, which represents private suppliers of NHS care, said the change would put off potential investors. It was “completely irresponsible” for the government to move towards monopoly supply of healthcare.

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