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17.09.12

Private sector could deliver 20% of NHS services by 2020

The NHS is to increase its links with the private sector, which could deliver up to 20% of services by 2020, a new report suggests.

Corporate finance advisor Catalyst has published a report highlighting the opportunities for private companies in the health sector, ranging from specialist services such as sexual health, to entire hospital takeovers.

The report suggests that new CCGs will be buying services worth around £1.3bn, and around £20bn worth of contracts could be put out to tender in the next few years.

“Areas such as primary care, community health services and commissioning support services are potentially worth billions of pounds,” the report reads. “This is an opportunity for financial investors to invest in the earliest stages of this shift.”

Justin Crowther, director at Catalyst and co-author of the report, told the Financial Times: “Despite many challenges, the private sector is increasingly providing healthcare services, whether paid for by the taxpayer or directly by consumers at the point of use.

“Whether this is to turn around underperforming hospitals, operate GP surgeries, deliver community services or create centres of excellence in areas such as pathology, [NHS] commissioners are increasingly using the skills and capital of the private sector.”

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