Commissioning

11.02.11

‘I’m not introducing more price competition’ - Lansley

Health Secretary Andrew Lansley has denied he is introducing more price competition into the NHS.

Asked directly whether he was or not, he told the BBC Hardtalk programme: “No. I’m introducing…strictly speaking I’m not. The last government put it in their operating framework in December 2009 and I haven’t changed it. I’m not introducing more price competition.”

Asked if there will be more price competition in the NHS under the reforms, he replied: “Not necessarily, no. It depends how the commissioners go about their tasks.”

He added: “If any of the commissioners think they can meet the quality they want best by establishing a fixed price and then asking those who want to provide services to meet that quality or exceed it, they can do that. There’s nothing in what I’m bringing in that requires those providing services to do so on the basis of competition on price.

“I’m giving patients greater choice, and patients will choose on quality because they receive the service for free. The GP consortia will be incentivised to deliver improving outcomes and will have a duty to improve standards and focus on quality, so they are incentivised for quality and there will therefore be competition, yes, but on quality, rather than price.”

Lansley said people talking of a ‘race to the bottom’ were “misunderstanding” the reforms, adding it was a “race for quality”.

He dismissed heavyweight criticism from organisations like the BMA, Royal College of Nursing and Royal College of Midwives, saying: “I could produce to you a list of quotes from many of those same organisations that are supportive of what we are setting out to do, and equally could give you a list of organisations supporting the fact we need to get on with making these changes.

“Across England there are local groups, not only general practices, coming together, working with their local authorities and health and community services and hospitals, and they are already putting in place some of the changes that will really make a difference.

“When we need to save money in the NHS in order to re-invest it to meet rising demand, we need these things to happen quickly. Designing better clinical services needs to be led from the frontline if it’s going to be really effective.”

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