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Sunday, 18th October 2009

Current Tory health plans are backward-looking and reactionary

Fraser Nelson 2:02pm

I have long been depressed about Tory health policy, or lack thereof. The News of the World today does a head-to-head about whether Andy Burnham or Andrew Lansley would be better to run the NHS – and I give my verdict.  The answer, I say, is neither of them. The patient should become the consumer, as is the case in the healthcare system of every developed country. But this would require taking on the NHS establishment, which no party is committed to doing. Or, rather, Alan Milburn was committed to – and had actually started to enact. But that reform agenda came under attack from the Brownites and Andrew Lansley.

The Tory health policy, as it stands, defies understanding. There are various, welcome plans to broaden the supply of providers – but they start with a proposal to grant operational independence to the NHS bureaucracy. Cameron calls this the “NHS Independence Bill”; its intention is to assure the poor NHS staff that government will not be reorganizing them again, and that they will be spared what Cameron says is the “disruptive” influence of politicians. He had in mind the Blairite supply-side reforms, which tried to force the NHS to open up to independent providers and force GPs to give parents the choice.
 
 “Trust the professions” went the cry amongst the Cameroons; “It’s a very conservative thing.” Erm, no it’s not. It’s a very Kinnockite thing, a very Dobsonite thing.  Alan Milburn had been bravely attempting to introduce competition into the NHS – asking private clinics to bid to provide services to NHS patients. He wanted overseas clinics to set up here, and some were.  But the Empire struck back: the NHS Confederation, the BMA etc. And they found a strong ally in Mr Lansley. Not only did he say: “I won’t reform you”; he said: “I will grant you operational independence so no minister will again reform you”.

So who will run the NHS? Lansley has other plans, some of them quite good. But if he grants operational independence to the NHS elite, how will he enact these reforms?  The NHS resisted Blair’s reforms when the Health Secretary had – in theory – dictatorial powers. How will the Tories reform when they have signed away those powers? By asking the NHS very nicely? Saying please, with sugar on top?

The ratio of manager-to-medic ratio in the NHS is one-to-one. That is to say, out of its 1.3m employees (more than the population of some EU member states) just 675,000 are professionally qualified clinical staff (details here). The rest are on the pen pushing/managerial/administrative side of the divide. The average NHS worker takes two weeks off sick every year, in addition to six weeks holiday.

The bureaucratic empire needs to be broken up; power needs to be transferred from the managers to the patient. This is the mission – Milburn was doing it. The Tories have told the bureaucratic elite that they will now have formal independence.

Once, the Tories had a good health policy: the “patient passport” proposed at the last election. A mini voucher system – the same idea that David Cameron is proposing for education. This would have put rocket boosters on the emergence of the Independent Treatment Centres, allowing any NHS patient to choose regardless of whether they were on a shortlist drawn up by their GPs. This would have transferred power to the users – exactly what the Tories are seeking to do in education. But when Cameron was elected leader, he adopted Labour’s sectarian attack language and described the passport policy as “allowing a few to opt out”.

My point, Coffee Housers, is that the Tories are on the wrong side of a very important distinction on health. Either you side with the users of public services, or you cosy up to the producers. Milburn rejected the sectarian language that Cameron has adopted. Milburn saw the NHS as a means of paying for healthcare – not providing it. It would be impossible to “opt out”, as Cameron described it, if your operation was paid for by the NHS because private clinics are part of the system.  My guess is that Cameron will, in office, realise his error (as Blair did, post-Dobson) and that the Milburn/Major internal market agenda will be picked up again.

It is so very odd that Tory plans for education are so admirable and potentially revolutionary, while the heath agenda is so reactionary. Cameron has evidently placed the NHS alongside Europe in the category of things he doesn’t want to have a battle about. Fair enough – but he can’t then have it said that the NHS will get better under the Tories.

Filed under: Alan Milburn (11 more articles) , Andrew Lansley (99 more articles) , Conservatives (2074 more articles) , David Cameron (1715 more articles) , Health (217 more articles) , Labour (2014 more articles) , Public service reform (340 more articles) , UK politics (4908 more articles)

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DavidDP

October 18th, 2009 3:12pm Report this comment

"But this would require taking on the NHS establishment"

No, this would require taking on the electorate. Which is fine, but it makes getting elected very difficult. In which case you won';t be able to carry out any reform anyway.

Still, I'll make an appointment with you next time I'm ill. Can't trust the professionals after all.

anonymous despairing conservative

October 18th, 2009 4:08pm Report this comment

It is impossible to have a rational debate about the NHS. It has assumed the mantle of state religeon and is sacrosanct.

In office, Thatcher never touched it and increased spending in real terms every year. Major had a go with GP fund-holding, but backed down from making that universal. That led to "them and us" claims from the left and Dobson dismantled it. Milburn went back to fund-holding, just at PCT level. Brownian influence has slowed the moves to bring alternate providers in.

Lansley has been captured by the health lobby and has gone native. Cameron, understandably, can't see past the treatment his son got - which was fantastic as all NHS care in those circumstances is. It is just the routine stuff they mess up!

With Lansley in charge, nothing will change and things may actually get worse. A gift for Labour!

Tiberius

October 18th, 2009 4:24pm Report this comment

As I'm sure you're well aware, Fraser, it will get better after the first term.

Kittler

October 18th, 2009 5:09pm Report this comment

All the "pen pushers and administrators". Sack the lot of course and get clinical staff to do their own filing and typing. They could also organise the purchase of all the requisites for their departments, do a bit of store keeping and if they still have some spare time what about looking after the payroll or little bit of maintenance work.

Fergus Pickering

October 18th, 2009 5:12pm Report this comment

You see, Fraser, the problem with being a consumer of the Health Service is that when you want to consume it you are ill. All these free choices! But you don't want a free choice. You want someone to hold your hand and make you better. When I'm offered an operation I can have any one of six at any one of six hospitals. But I don't want any of that. I want someone to hold my hand and. Most long term consumers of the Health Service are old, many half gaga and frankly I don't feel so well myself. All these comprisons wit the Red Army are not to the point. Even if you could sack lots of unproductive pen pushers there would still be a million people doing Health things, as I am sure there are in France, Germany, Italy etc etc. Here's a rahter out-of-date anecdote for you. A friend of mine got lung cancer. Well she smoked forty a day. The NHS pretty well told her there was nothing else they could do for her. So she went to Italy and the nice Italian Health chaps took a lot of her money and she died in six months. Most health care ends in failure wherever you are. The only people whose opinions are worth much about it are the sick. And the sick are sick, often too sick to have much of an opinion about anything. All hospitals are vile. They are full of sick and dying people, what would you suppose they would be like? Is the French Health Service really as wonderful as they say it is? Well, French bureaucracy in general is ghastly, unfeeling etc etc. Does it change when you get tothe Health end of things? What about poor people? How do they deal with them?

Ben

October 18th, 2009 5:41pm Report this comment

You need to calm down a bit on this Fraser. I'm an NHS consultant surgeon - no private practice etc, I am a supporter of the NHS, but I know there's a lot wrong with it. Consider this: if your mother/father needed a hip replacement, and it was quicker to get it from a treatment centre, by 4 weeks say, but there was a 5% chance of a serious complication, rather than 3% in the NHS, what would you recommend? Low probability but high impact complications are the result of lower clinical standards in the competitive sector. There is good evidence for this claim. The perceived "need" for alterative health care suppliers, like ISTCs has been generated by arbitrary waiting times targets, which have now gone way beyond what patients require in most cases, and are really just a means for political points scoring. Milburn was a dreadful Health Minister in many ways, and styling him as a lost leader of reform is amusingly bizarre. Health care should be about minimising risk within reasonable time limits, not about driving down waiting times at all costs. There are many many other aspects of this debate, but you need to look beyond your usually admirable economics viewpoint sometimes. No doubt we could usefully lose a lot of nonclinical staff, but no party is actually proposing that. In fact Milburn presided over their expansion. Rawnsley looks like a caretaker, not the man to change things for the better. Dave will know that. For elective (nonemergency) care I would summarise: relax the targets a bit, they are expensive and there's no money, as we all know; annualise the consultant's contracts and use operating facilities more flexibly; smarten up the procurement process for implants, supplies etc, it is inefficient and wasteful; make redundant about 25% of nonclinical admin staff immediately - ask the doctors who to keep; remember that elective services are only the priority if you have already got the emergencies right (they are the political Cinderella).

Really though, Milburn, what were you thinking?

Verity

October 18th, 2009 5:48pm Report this comment

Fergus Pickering, the reason the health services in France and Singapore are so efficient is, the money follows the patient. If you need a test, or an x-ray, whatever, your doctor hands you a prescription, and off you go with it. You will choose a lab or an x-ray or ultra sound establishment that your friends have recommended as being friendly, efficient and clean. The staff act like private enterprise people, because that's what they are. The government pays for all these tests. If they get a name for being surly, or not keeping appointments on time, customers will go elsewhere and they will go out of business.

I had an ultra sound, and the courtesy and friendliness were amazing, especially as this was in France, where they don't notice that their supermarket trolley has jammed you into a freezer compartment and that walking on the pavement four abreast means people coming in the opposite direction get pushed, unnoticed, into the gutter.

They only get paid for services they render, and they can only render services if they make it easy and convenient for the customer.

Also, when they've explained your results to you, they hand them to you. You get to keep the ultrasound or whatever, and you decide whether to return to the doctor that prescribed it or go to another doctor.

Like everything the French do, it's very efficient.

I recommended, although it has been posted up as I write, that we adopt the Singapore system and get a Singaporean to run it for five years, but this would apply equally to the French. They are both superb managers.

Robert

October 18th, 2009 6:29pm Report this comment

My own quite extensive experience of the NHS is that once you are in the system with some identifiable problem, you might (possibly) do very well; however, you are quite likely to be dead before you can get to that point. And that is the point: it is rationed by mortality.

Olaf Rye

October 18th, 2009 6:32pm Report this comment

You miss the point, Kittler: no one is suggesting abolishing all administrative support, but instead want to see less than a one to one ratio of bureaucrats to medics in the service. Surely, if the military can do with one officer for every thirty men, the NHS could manage one administrator for every twenty doctors or nurses. It is a wasteful system as it is, meaning that we could easily reduce staff, save money, and have a more efficient medical service.

Simon

October 18th, 2009 6:38pm Report this comment

Glad you've found a resting place at the NoTW.

Ben

October 18th, 2009 7:39pm Report this comment

One more point Fraser: who sorts out the complications and cock ups of the private clinics, overseas providers and ISTC's? Who deals with the very many slightly less healthy patients that these risk averse providers refuse to take on? The NHS of course.

The mixed healthcare economy is a firefighting measure at present, because of waiting list guarantees. A genuinely competitive model would require ground up restructuring, where these clinically weak alternative providers can supply a clinically equivalent service. Right now they can't, and they know it. It's too expensive and too complex for them to organise.

Mark M

October 18th, 2009 7:51pm Report this comment

Quite right about payment v provider. The NHS should only be a way to pay for healthcare. Patient choice is absolutely crucial if we want to get the best out of our healthcare system and this does not happen at the moment.

If I'm not happy with what's on offer at my local supermarket, I try out another chain. If I'm not happy with my state healthcare, I have to lump it, get in line and wait.

There has to be a better way, and surely we have enough intelligent people in this country to make it work.

Dirty Euro

October 18th, 2009 8:41pm Report this comment

Patient choice is a another term for making rich people get better services than poor people. All that education passport means is rich people will use that to cut their prices at Eton.
It is a reactionary policy not a policy of choice. If you have more money you will get more choice. End of story.

TomTom

October 18th, 2009 9:13pm Report this comment

I am not a Consumer of health care but a Recipient of health care. I cannot possibly evaluate treatments, drugs, hospitals, medical teams, nursing care unless I want to give up my day job and become a professional.

I want better information, well-trained doctors, well-equipped hospitals, and my every need catered for...pity that you Fraser drew the short straw when you were ill as I had tailored the whole system to my personal needs and convenience

Will J

October 18th, 2009 10:31pm Report this comment

"The patient should become the consumer, as is the case in the healthcare system of every developed country."

Yes, and the way most of them do that is not by the state funding healthcare through PCTs and private companies providing hospitals (which is what this article seems to imply), but through a carefully regulated compulsory insurance scheme and local government as the main hospital provider. Insofar as this works it does so not only because insurance schemes give patients freedom to choose their preferred place of treatment, but also crucially because they ensure in one way or another that some of the cost of care is borne by the patient personally, so that with the freedom comes the all important incentive to be responsible in balancing quality (and necessity) with cost. Until the British system introduces this incentive to buyers to keep costs down it is impossible for it to become an efficient market, however many private companies provide hospitals.

This is such a basic economic point about the structure of the system that it should be obvious to anybody who's ever studied economics. And yet here we are in the seventh decade of the NHS and still no one is proposing reforms which address this fundamental structural flaw. What makes this even more incredible is that we're surrounded by countries who understand this point perfectly, so that whatever other flaws their healthcare systems have they don't suffer from the kind of chronic bureaucratic bloatedness that only a system which fails to grasp Economics 101 could labour under. Come on guys, brush up on the theory, take a look at how everyone else does it, and get a grip!

Fergus Pickering

October 18th, 2009 11:17pm Report this comment

Verity, I presume these doctors etc are not in Paris. Nobody is Paris is polite to anyone else ever. It is true that things get better as you head South. But then I imagine the South of France is your natural home. Singapore? Never been there. Never will. When I had the only operation I have ever had in my life the NHS staff and doctors (doctors all brown) were very polite and efficient. But then in East Kent everybody is polite and efficient AND we have nice Grammar Schools and a jolly good cricket team. East Kent must be bigger than Singapore. Home Rule for East Kent.

David Bouvier

October 19th, 2009 12:24am Report this comment

Ben - Browne, Jameison, et al "Case-mix & patients' reports of outcome in Independent Sector Treatment Centres: Comparison with NHS providers" published in BMC Health Services Research in 2008 gives ISTCs a pretty much clean bill of health.

Is there comparable research you which to quote against this? What evidence did you have in mind. It also mentions that the case-mix for which they adjusted arises from the NHS's contractual arrangements not the ISTCs 'cheating' in some way.

Not that the ISTC model is a particularly good example of actual competition or anything.

Ben

October 19th, 2009 8:14am Report this comment

To David Bouvier - the British Orthopaedic Association has a substantial report - which is continuing to be added to - regarding substandard orthopaedic care in ISTC'S. Most patients fare well anyway, but the important detail is in areas like reoperation rates after initial surgery, where apparently small differences (my 5% v 3%) matter hugely to patients, but not to government or management. I believe that this has been presented to the DoH, who will not of course be interested. Longer term results are of course yet to be available for procedures like joint replacement, but if your new hip only lasts 8 years, rather than 20, you might wonder if you'd been sold short at the beginning. There is no doubt at all that ISTC's, and the private providers who are feeding on the NHS waiting lists are cherry-picking straightforward cases, which should improve their outcomes, you might think. It also tilts the residual NHS casemix to more risky and complicated procedures thereby slightly increasing their number of adverse events.

Ian C

October 19th, 2009 12:12pm Report this comment

One fight at a time. One that is popular and can be won. Education was Blair's mantra and he ducked it because he was powerless to do the right things against the socialist Labour education establishment. This is now so unpopular that it is defeatable in a short timescale and must be reformed early to show electoral (not to mention educational) gain by the time of the 2014/15 election.

The NHS is a second term issue. It is expensive and incoherent politically what Cameron is saying. But as a piece of political strategy it is essential to make it an issue for later while Tory competence credentials are established.

guy

October 19th, 2009 6:28pm Report this comment

It is so easy it actually hurts. There are only two principles that matter in the NHS, it should be high quality and it should be free. That’s it! Attempting to nuance this message has resulted in the cadaverous stranglehold that so bedevils an organisation that is stuffed with high quality individuals just waiting to be set free. The government should confine itself to setting (and inspecting) the standards and range of services it expects an organisation calling itself NHS to achieve; better surely than the current private provider cherry picker approach. . All that the government has to do then is pay, a simple per unit of healthcare price; call it a passport if you like. How the provider spends the cash to achieve the quality, quantity and range of services required is up to them; no grand plans, no world class commissioning, definitely no PCTs. Politicians will become unpopular for sure, because some hospitals and GP surgeries will close, and the massive forces of conservatism will vocally hate them, nobody likes change. But it is a tough job, and surely they didn’t go into it to be popular! It is that simple, not wielding the axe, but cutting the chains!

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