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20.08.14

NHS trusts taking advantage of relaxed rules on private patient income

Some of Britain’s leading NHS hospitals have seen large increases in their private patient income since the cap on this was raised substantially under the recent reforms, according to figures obtained by the Labour Party. 

Under the Health and Social Care Act 2012, foundation trusts were given the right to generate up to 49% of their income from private patients. Prior to this, under rules introduced by the last Labour government, the amount of income foundation trusts could generate from private patients was capped at the level reached in 2006 – this averaged about 2% nationally, but there were regional variations. 

This restriction was introduced by Labour to quell a backbench rebellion over foundation trusts – no such restriction exists on NHS trusts. 

But now, in what Labour calls a ‘creeping privatisation’ of the NHS, six hospitals in London and the south east have been accused of “exploiting” the lifting of the cap on the level of private income under the act. 

The FoI data, released to Gareth Thomas, shadow minister for London, and provided to the Guardian, highlights that University College London Hospitals NHS FT London has increased its private patient income by 39.63% – from £7.3m in 2010-11 to £10.3m in 2013-14. Royal Brompton has seen this income rise from £24.3m to £33.6m; Moorfields Eye Hospital in London from £16.1m to £21.3m; and Papworth Hospital Trust from £4.9m to £6.4m. 

The Royal Surrey County Hospital Trust, which serves the South West Surrey constituency of the health secretary, Jeremy Hunt, has risen from £3.6m to £4.6m; and Chelsea and Westminster Hospital Trust in London has increased from £10.7m to £13m. 

Luciana Berger MP, Labour’s shadow public health minister, responding to the figures, said: “Under David Cameron patients are increasingly being left facing the agonising choice of waiting longer for treatment or paying to go private. It is yet more evidence that he cannot be trusted with the NHS. 

“Ministers were warned that allowing hospitals to turn over half their beds to private patients risked longer waiting times for NHS patients. That is exactly what we are now seeing.” 

She added that Labour will introduce proper safeguards on private patient income to ensure NHS patients are “always put first” and “we will put the right values back at the heart of the NHS”. 

A government spokesman stated that hospitals are treating record numbers of NHS patients, with 850,000 more operations being carried out each year than under the last government. 

He added: “NHS hospitals have always been able to generate small amounts of additional income – which has remained well below 1% of hospitals' total income in the last four years – by treating private patients, every penny of which is used to improve the services that NHS patients receive.” 

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