North East Strategic Health Authority

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The North East Strategic Health Authority was formed on 1 July 2006.  Where possible reports will continue to be shown under:

County Durham and Tees Valley Strategic Health Authority
Northumberland, Tyne and Wear Strategic Health Authority

  • NHS plc: a dire diagnosis. Private Eye says: "No sooner had a cross-party committee of MPs heavily criticised the government's use of independent sector treatment centres (ISTCs) than the Department of Health defiantly announced that these private sector companies would be given £lbn worth of contracts to run a series of "diagnostic centres". The identities of the lucky firms show how commercial the business of healthcare has become. The London and east England contract goes to Amicus InHealth… owned by a consortium of South African private health outfit Netcare, which botched a contract to provide cataract operations in Oxfordshire; Apax, a private equity group set up by New Labour favourite Sir Ronald Cohen; and Inhealth, a company chaired by serial private health director Tim Chessells and owned by a mysterious Luxembourg fund called Pegasus. Doubtless this bunch has nothing but the nation's health in mind as it makes crucial diagnoses and won't be unduly inclined to push people to independent treatment centres of the sort run by, er, Netcare. Meanwhile in the South West the record of the (management) consultants at Atos Origin in providing the over-priced and unpopular choose-and-book system for hospital referrals was no bar to their success. Nor in the South East were there too many concerns about the conflicts of interest presented by handing the diagnosis deal to the country's biggest private hospital operator, the taxdodging BUPA. West Midlands patients will be able to benefit from the services of Mercury Healthcare, the company that has already been paid millions for work it hasn't done and whose "group strategy director" is one Mark Smith, the former chief executive of Portsmouth Hospitals NHS trust who resigned after the trust received zero stars. From there he became head of health at PFI firm Amey working closely with Ken Anderson... who now just happens to be doling out the diagnostic centre contracts as "commercial director" of the NHS. Appropriately enough in the North East the diagnostics contract has gone to Alliance Medical, the company owned by yet another private equity group, Bridgepoint - former employer of Geordie New Labour man and ex-Health Secretary Alan Milburn. The company's previous forays into the health service include a £95m contract to run MRI scans which were so poor they had to be checked by the NHS anyway, leading the British Medical Association to describe the firm's performance as "a complete disaster". So depending on where you live, your next illness could well be diagnosed by an incompetent or a profiteer - or more likely a combination of the two." Summary by Keep our NHS Public of Private Eye 16 August 2006
  • Netcare lead bidder for ICATS. The Department of Health has named Netcare and Partnership Health Group - in partnership with Alliance Medical - as preferred bidders for its controversial integrated clinical assessment and treatment services in Manchester. The proposed contract has been dogged by criticism from local stakeholders in recent months as concerns were raised that awarding Netcare the contract would be anti-competitive. If Netcare wins the five-year deal to provide ICATS it would be in a position to assess patients for surgery and then refer them to its own Greater Manchester surgical centre for treatment. The deal will see Netcare providing 220,000 outpatient, diagnostic and surgical services in seven locations including Carlisle, Preston, Fylde Coast, Ulverston, Pendle, Ormskirk and Workington. In response to local concerns the DoH has decided to ensure that preferred bidder status for the two parts of the contract are awarded to different providers. The DoH has also named UK Specialist Hospitals - formerly part of the New York Presbyterian Hospitals group - as preferred bidder for a second-wave elective independent treatment centre in the South West. UKSH will operate an ITC based in North Bristol that will carry out 25,000 procedures a year over five years. Last month Bupa was named preferred bidder for two elective ITC schemes in the North East and Cheshire and Merseyside. Summary by Keep our NHS Public of Health Service Journal 17 August 2006
  • 14 private firms win place on choice menu in £200m deal. The Department of Health has signed a deal worth £200m with 14 independent healthcare companies to carry out thousands of additional elective care procedures. The contracts, signed last week, are intended to deliver an additional 150,000 procedures per year, on an 'ad hoc' basis, as part of the DoH's second wave of elective care private sector procurement. The 14 companies will be added immediately to the central extended choice menu, which currently consists of all foundation trusts and some independent treatment centres. Under the policy, patients awaiting elective care can choose from this list, as well as from at least four local providers. Seven of the big name private healthcare companies have won a large chunk of the work. BMI Healthcare, part of the Netcare group, is the biggest winner, securing 44 contracts across the country. Other contract winners include Bupa, Nuffield, Capio, Centres for Clinical Excellence, Mercury Health, and Nations Healthcare. Several small private companies are also understood to have won small contracts to provide local services to NHS patients. Each contract will run for five years and the private companies will provide NHS patients with a range of elective care services including general surgery, endoscopy, ophthalmology, plastic surgery and neurology. Unlike the first-wave elective care contracts, where PCTs had to pay for the number of procedures contracted - even if they did not use the capacity - the latest deals will [not] operate under a 'take or pay' arrangement, which means PCTs only pay for work carried out. Earlier this month, the DoH named Netcare and Partnership Health Group, in partnership with Alliance Medical, as preferred bidders for its controversial integrated assessment and treatment services in Manchester. At the same time the DoH also signed a deal with UK Specialist Hospitals, formerly part of the New York Presbyterian Hospitals group, to act as preferred bidder for a second-wave elective independent treatment centre in the South West. Last month Bupa was named preferred bidder for two elective independent treatment centre schemes in the North East and Cheshire and Merseyside as part of its wave-two elective care procurement programme. Summary by Keep our NHS Public of Health Service Journal 31 August 2006
  • Anger as health budget slashed. Angry hospital bosses have condemned the Department of Health for forcing the North-East to pay for health service deficits in the rest of the country. The region's health service is in the black - but has still had £10m slashed from the budget it uses to train junior doctors. Health chiefs say the move, imposed at short notice in the middle of the financial year, has already caused recruitment restrictions, and could lead to cuts in patient services along with further NHS redundancies and the cancellation of training programmes. Sir Miles Irving, speaking at his last meeting as chairman of Newcastle Hospitals NHS Foundation Trust, accused the Government of attacking the "roots" of the NHS. "If you want something to die, or really want to damage something, such as the medical profession, you attack its roots and the roots in this case are education," said Sir Miles. NHS organisations in the North-East have been told to make savings in education and training totalling £9.8m - with Newcastle Hospitals hardest hit at nearly £5m. The trust has asked Newcastle University's postgraduate institute for medicine and dentistry not to make any job offers without its approval. Sir Miles described the situation as "horrifying, profound and serious" and said if frontline staff did not get sufficient training, patient care would be threatened. "We've been assured that this cut is just for one year, but I've been in the health service for 53 years and I've heard that one before." Summary by Keep our NHS Public of Newcastle Journal 28 September 2006
  • PCTs delayed on audiology contract. An audiology contract has been delayed indefinitely because the provider has not been able to sign off quality and safety guarantees with the Department of Health. The DoH had awarded Mercury Health preferred bidder status to provide diagnostics services to NHS patients across the West Midlands, on behalf of the region's 17 primary care trusts. However the delay in the audiology contract has left PCTs fearful that they may miss next year's 18-week maximum wait target. A DoH spokesman said Mercury Health had not yet shown that it could 'ensure patient safety and high-quality healthcare for NHS patients'. The contract would only proceed when this had been guaranteed, he said. The DoH's contract with Mercury Health to provide other types of diagnostics services to patients in the West Midlands will start at the end of May, two months after the government's original deadline. In February, HSJ revealed that BUPA had pulled out of a contract with the DoH to provide diagnostic services across the South East. Amicus InHealth, a joint venture between Amicus Healthcare and InHealth Group, has won preferred bidder status on two of the diagnostics contracts in London and the East of England. Atos Origin will provide diagnostic services to patients in the South West, and Alliance Medical has won preferred bidder status for the North East. Summary by Keep our NHS Public of Health Service Journal 5 April 2007
  • Health chiefs in the region have defended a £72m underspend – saying a surplus was always planned. North East Strategic Health Authority (SHA) said the money has not been lost to the NHS, having been carried forward to the current financial year.  Care & Health 8 June 2007
  • £84k doc trip anger. Health bosses spent £84,000 sending a delegation on an overseas mission to Japan - to find out how to "increase efficiency". The controversial trip was made by 14 doctors and chief executives who studied Toyota's "lean management". The North East Strategic Health Authority said cash for the trip came from training funds and staff learned how to improve efficiency. Summary by Keep our NHS Public of Mirror 16 July 2007
  • Dropping diagnostic deals could scare away investors. Cancellations of diagnostic contracts with the independent sector could damage confidence in future deals, investors have warned. Graham Kendall, acting general manager of the NHS Partners Network, which represents independent healthcare providers said, 'It is very disappointing as and when contracts get cancelled but we still remain optimistic that the government is going to press ahead [with private sector work],' he said. Five of the seven diagnostic contracts are unlikely to go ahead in their current form, although in some cases the firms involved have not yet been formally told of a cancellation. Two contracts with Atos Healthcare were cancelled because it could not deliver to the agreed timetable. But three others have been reviewed by the Department of Health, partly because the NHS needs less additional capacity than was initially thought. In some areas primary care trusts will now place smaller contracts with the firms. Clinicenta, which was due to provide a range of diagnostic services across the South East, will carry out more than 4,000 audiology assessments and fittings of hearing aids, starting in West Kent and extending to Surrey and Sussex. Clinicenta managing director David Highton said the system was now going through a transition from national to local procurement. A spokesperson for Alliance Medical/ Care UK said they were still waiting to hear what was going ahead in the North East, where they had been chosen as providers. Summary by Keep our NHS Public of Health Service Journal 1 November 2007

Heat Map North East
SHA forecasts 2006 07 North East

Annual Health Check 2006

Healthcare organisations weak for quality of services

None

Healthcare organisations weak for use of resources

Darlington Primary Care Trust
Derwentside Primary Care Trust
Durham and Chester-Le-Street Primary Care Trust
Gateshead Primary Care Trust
Hartlepool Primary Care Trust
Langbaurgh Primary Care Trust
North Tees and Hartlepool NHS Trust
Northumberland Care Trust
Sedgefield Primary Care Trust
South of Tyne and Wearside Mental Health NHS Trust

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Heat Map North East ] SHA forecasts 2006 07 North East ]

Sheila Porter-Williams
Campaign for Health Service Democracy
Green Haven, Halfway Lane
Dunchurch
Rugby, Warwickshire CV22 6RD
sheilaCHSD@porter-williams.freeserve.co.uk