Wintery Knight

…integrating Christian faith and knowledge in the public square

How privatization turned the worst-performing NHS hospital around

From the American Spectator.

Excerpt:

[T]he most successful of the “drastic” experiments put in place is that much-hated bête noire of progressives and Obamacare supporters everywhere: privatization. The Mail Onlinereports that Hinchingbrooke Hospital, “The first NHS trust to be operated entirely by a private company has recorded one of the highest levels of patient satisfaction in the country.”

In other words, the Brits were so desperate to fix their crumbling health care system, they experimented with the private market and it is outperforming government-run health care without breaking a sweat. Hinchingbrooke was, like so many hospitals in the UK, about to go under when a private company called Circle Holdings was awarded a 10-year contract to run it. This is the first time such a company has been given control of an NHS hospital and the results will not come as a surprise to anyone who understands free enterprise.

As the Mail Online goes on to report, “The company running the trust has slashed losses at the hospital by 60 per cent and will soon begin to pay… debts built up over years of mismanagement.” Though will be no surprise to free market advocates, it has been a real eye-opener to the NHS. Privatization isn’t the dirty word it once was in the much-maligned health system: “The takeover deal … is seen as a blueprint for the future of many NHS trusts. The George Eliot Hospital in Warwickshire is already considering adopting the model.”

It will also come as no surprise to those who believe the market provides the most efficient health care delivery model that, in addition to dramatically improving the financial prospects, privatization has improved patient satisfaction. Before Hinchingbrooke was taken over by Circle Holdings, patients had a very low opinion of the hospital and the care it provided. Now, this perception is dramatically improved: “Patient satisfaction has risen to 85 per cent, placing Hinchingbrooke in the top six of the East of England’s 46 hospitals.”

I took a look at the UK Daily Mail article and found an interesting section:

Patient satisfaction has risen to 85 per cent, placing Hinchingbrooke in the top six of the East of England’s 46 hospitals. The feedback is calculated by asking families and patients whether they would recommend the hospital, then weighting the answers compared to local peers.

Previously the trust was among the lowest ranking for satisfaction.

Figures also show that Hinchingbrooke has risen from being one of the worst performing trusts to one of the best under the private firm’s management.When Circle took over, the hospital was consistently near the bottom of the 46 trusts, with many patients waiting more than four hours in A&E.

It now tops the list for short waiting times, seeing 98.2 per cent of patients within the required window.
The hospital also ranks fifth for the proportion of patients with suspected cancer having tests within a fortnight.

Before the takeover it had missed targets every month since June 2010.

It now treats 89 per cent of cancer patients within 62 days, beating the 85 per cent target.

Circle saved millions of pounds a year by cutting out arduous paperwork and middle management.

Under the former ownership, a lengthy form had to be filled out every time a lightbulb needed changing, in a process that often took more than a week.

The group, which runs independent hospitals in Reading and Bath, inherited debts of £39million with the project.

The hospital had been expected to lose £10million last year, but this has been whittled down to  £3.7million by the Circle group.

It made up the deficit from its own coffers, rather than taxpayer funds, and is expected to break even in the current year.

Do you think that we might consider privatizing Medicaid and Medicare, since we know that privatization is good for health care consumers and taxpayers? Of course not, because privatization is bad for politicians, who want to retain control of health care. Privatization is good, but we’re not going to get it unless we vote the socialists out.

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