The Existential Threat to the National Health Service.I

The Existential Threat to the National Health Service.

I am not given to hyperbole but I honestly believe the NHS is facing an NHS Existential Threat. By this I mean that it is possible that, within four years, the NHS as we know it will have ceased to exist. When I say as we know it, I mean largely in public ownership, available to eligible patients on the basis of need, not the ability to pay and, accepting current exceptions, free at the point of delivery.

What is the nature of the existential threat?

Everyone involved in running or delivering the National Health Economy has heard of The Nicholson Challenge. In his Annual Report 2008-9, the Chief Executive of the NHS, Sir David Nicholson, announced a £15-20 Billion hole in future NHS funding. This can be found on page 47 of NHS Chief Executive’s annual report 2008/09. This states:

Looking ahead to the next Spending Review, we need to be planning for a much tighter financial environment than we have had in recent years. We need to start that work in earnest now.
We know that NHS investment will grow by 11 per cent over the next two
years. That growth will be locked in on a recurring basis, so we have a real opportunity to prepare for harder times. After those two years, we must be prepared for a range of scenarios, including the possibility that investment will be frozen for a time. We should also plan on  the assumption that we will need to release unprecedented levels of efficiency savings between 2011 and 2014 – between £15 billion and £20 billion across the service over the three years. This is so that we can deal with changing demographics, the implementation of the regional visions and cost pressures in the system. That level of productivity gain can only be realised through the kind of quality improvements and advances in innovation described earlier in this report.

So What?

This £15-20 billion of efficiency savings is from where the threat to the NHS comes. This blog will not favour one political party over another. It does, however, need to be realised that the Nicholson Challenge predates the last General Election and Andrew Lansley’s bottom-up Clinical Commissioning Health Reforms.

Not many people are aware that the new Clinical Commissioning Groups that replaced the old Primary Care Trusts have one statutory objective – to deliver a 1% surplus within an operating year. A large Clinical Commissioning Group, purchasing services for a population of around 720,000 could receive in the order of £700 million a year to purchase hip replacements, prescriptions, X Rays, Out of Hours Service, Cancer treatments etc. It’s only statutory obligation is, at the end of the year, to be left with £7 million in the bank.
That newly formed Clinical Commissioning Group, led by eager and dedicated GPs, is, however, likely to find that when it speaks to its Hospitals, Community Trusts, Ambulance Services, Mental Health Trusts etc that it will have calls upon its £700 million funding in excess of £730 million. The plan to meet the shortfall, very simplistically, is to strip activity out of the hospitals and to get GPs to do it for a fraction of the cost. This is called the Quality, Innovation, Prevention and Productivity programme or QIPP for short.
The frightening thing for me is that nothing is changing. We have the QIPP agenda and we attend regular meetings to monitor progress. All the right noises are being made but, when you put GPs on the spot and ask ‘Being aware, as you are,  of the problems that face the NHS, what are you doing differently when the consulting room door closes?’ The answer is overwhelmingly ‘Nothing different at all.’ This speaks volumes for the dedication of GPs in putting their patients first but the failure to act is posing an existential threat to the very NHS that they all love and support.
What will  happen when the new CCGs fail to deliver their commissioning plans within budget has not been made clear. The Department of Health has made clear that CCGs will deliver ‘or else’ (my words – hyperbole I know) . Failure to deliver is not an option according to the Department of Health.
What follows is my personal assessment of what will probably happen in the event of failure to deliver within budget:
Year 1. Chief Executive of CCG sacked.
Year 2. special Measures – Department of Health put Special Task Force into CCG
Year 3: CCG commissioning role put out to tender.

The Nuclear Option

This is the ‘nuclear option’. If the role of the CCG is put out to tender there are likely to be a number of private health companies and partnerships who would bid for that role. This has already happened in the running of Hospital Provider Trusts.  If and when this happens, the commissioning of high quality health services that are cost-effective, sustainable and reduce inequalities will become subordinate to a profit motive and the interests of shareholders and/or partners. At the this point, the NHS as I know it, and as the population at large know and love it, will have ceased to exist.

So what should we do? More anon……

Published by Andrew McHugh is pracmanhealth

My name is Andrew McHugh. I was a GP Surgery Practice Manager in one of the largest GP Surgeries in Oxfordshire from June 2006 - May 2016. I have extensive experience in cross cultural settings overseas and within the business community of the UK. I have a particular interest in strategic planning and the future of the NHS. I am very clear that we cannot progress by delivering more of yesterday's solutions. I don't have any off-the-shelf solutions. The solutions to the problems that face the NHS and General Practice are multifaceted and anyone who says he has found the solution hasn't understood the complexity of the problem. The first stage to addressing the vulnerability of individual practices, General Practice as a whole is to admit we have a problem. Only then can we have any hope of overcoming those problems.

One thought on “The Existential Threat to the National Health Service.I

  1. Thank you…. someone needs to stand up and point at the elephant in the room. This needs to be said, we will loose the NHS and everything it stands for if we do not do something now.
    As I sit in my consulting room on a dreary Monday morning it isn’t any of my patients that make my heart sink. I feel like I have the weight of the world on my shoulders… I am 34, a GP partner in a practice that I love. I give my heart, soul, time, energy, commitment and loyalty to this place. I have partners I value and respect, a practice manager that keeps me sane, loyal staff and patients that I hope get care I would deem good enough for my mother.
    None of these things make me sad, the sadness and fear arise from the persistent threat to all that I hold dear in this place.
    I worry that in five years time I will be working for Virgin Healthcare, leaving work at 5pm, without any of the sense of pride and commitment I have at the moment.
    I worry that in five years time I will be so burnt out that I will not be able to offer care to my patients that I would deem good enough for a houseplant let alone my mother.
    I worry that GP’s will retire or leave and we will not be able to recruit anyone with any of the core values I see as essential in a good GP.. commitment, flexibility, tenacity, compassion, empathy, kindness and strength.
    I worry that no one is listening or that people simply do not care. I hope I am wrong and that someone is out there listening, that people do value what we do and want to save their NHS and the core values of traditional general practice. Change is an inevitable part of life and to be embraced, the problem we have is that we are so busy with our heads down working we are missing the fact that things are changing for the worse and if we don’t do something now it will be too damn late!

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