Private health investigations

THE decision by the Office of Fair Trading to investigate the private healthcare industry is nothing if not timely. The fact that the NHS is undergoing yet another shake-up, this time courtesy of the coalition Government, and that it still accounts for nearly a fifth of government spending, means that use of the private sector to help provide a competitive and efficient service for patients is long overdue.

While the last government was happy to throw vast sums of money at the NHS, any reform of its structure that might involve increased use of private healthcare was seen as highly problematic for a Labour administration. Meanwhile, the decision by the Tories, for similar political reasons, to protect the NHS budget and avoid any danger of Labour taunts of "privatisation" raised fears that, yet again, meaningful reform was to be ducked.

The new Government's decision to announce a sweeping reorganisation of the NHS, however, is aimed at giving patients more choice and improving services by fostering competition. This would be achieved by wresting commissioning power from managers and giving it to family doctors who would either buy care and treatments directly or outsource the task to others, including private firms.

But if this strategy is to succeed in reducing management costs while offering a decent service to patients, use of the private sector will be crucial in helping to provide choice and competition, thereby driving up standards. Put simply, private healthcare has to help the NHS to do more with less, providing a better service while having much lower costs.

And if, as the OFT suggests, the sector is not even working well for private patients, restricting the ability of doctors to practise and preventing effective competition, how on earth is the NHS to reap the benefits it needs from private healthcare? The OFT's inquiry should be thorough and fast.