Magazine article Public Finance

NHS Spending on Private Hospital Care Soars to £615M

Magazine article Public Finance

NHS Spending on Private Hospital Care Soars to £615M

Article excerpt

The NHS spent a record £615m on private sector hospital care last year, Industry analysts have revealed.

Money from the NHS accounted for an estimated 19% of the private hospital Industry's £3.2bn revenues In 2007, almost double the 10.5% figure tor 2004, according to Laing and Bulsson's annual Laing's healthcare market review.

There was 'a strong rise in demand for elective surgery and diagnostics' provided by private firms to the NHS, the report. I on October 29, said.

It added that around £305m of NHS spending on private sector acute hearth care came from local trust budgets, while central Department of Health spending on the independent sector treatment centre Programme accounted for another £270m. The rest, around £40m, was spent on centrally procured diagnostic services.

ISTCs have been highly controversial, with the surgery centres set up in the first wave of the programme paid a premium on top of NHS tariff rates and given guaranteed volumes of wort In some areas NHS trust finance was hit as patients were diverted to the new centres. …

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