24.06.11
NAO warning over social enterprises in health
The NAO has warned against over-optimism in the setting up of social enterprises in healthcare.
The new organisations, often formed of former NHS staff selling their services back to the health service, run a significant risk of failure and the NHS itself often ends up shouldering many of the risks and liabilities, the report says.
Only 20 have been formed so far, none of which have a sufficient track record to judge the costs and benefits, the NAO said – but some may struggle to survive when their contracts come up for renewal again.
The auditors said that PCTs need to have plans in place to deal with potential failures of social enterprise to ensure continuous health services for patients.
Despite the staff becoming, in effect, self-employed groupings, NHS commissioners “will be responsible for ensuring that essential services continue to be provided”, the NAO said.
It was still far from clear that the NHS would gain efficiencies from the change, it added.
The Department of Health was unusually blunt in its reaction to the report, saying the NAO had “failed to understand the point of this initiative”, which “has delivered clear benefits”, it said.
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