1-20 of 280 results for subject:Procurement
Librarians' tools
- Search time
- 0.191 seconds
- Solr query time
- 0.006 seconds
- Search query
- subject:Procurement
- We searched for
- subject_t:Procurement OR subject_t:"Procurement and PFI" OR subject_t:"Purchasing policy" OR subject_ses:92609
Type
House
Session
Year
Department
Member
More
Primary member
Answering member
Legislative stage
Legislation
More
Subject
More
Publisher
To ask the Secretary of State for Health, if he will make an estimate of the potential cost of implementing each clause of the National Health Service (Amended Duties and Powers) Bill.
To ask the Secretary of State for Health, if he will make an estimate of the potential cost of implementing each clause of the National Health Service (Amended Duties and Powers) Bill.
We understand that the policy intentions of the National Health Service (Amended Duties and Powers) Bill (‘the Bill’) are to establish a duty on the Secretary of State to provide NHS services, to make reforms to the NHS in such a manner as to remove its susceptibility to procurement and competition laws and to reduce the level of non-NHS health income that NHS organisations can receive.
This Bill, were it to become law, would reverse a proportion of the changes made under the Health and Social Care Act 2012. The Department considers that a reasonable estimate of the cost of implementing this Bill would be in the order of at least tens of millions of pounds.
The costing does not reflect the opportunity costs, organisational restructuring and associated staff and redundancy costs that may need to be accommodated. Significant costs could also arise from implementation costs, including legal costs. There are also likely to be significant costs associated with the transitional changes required to give effect to the Bill’s provisions. For example, Clause 5 gives the Secretary of State power to direct clinical commissioning groups and the NHS Commissioning Board. Such a power materially changes the character of these organisations, which have been established to exist outside of a traditional NHS ‘hierarchy’ and to minimise the risk of political micro-management.
Competition and procurement legislation
A key policy aim of the Bill – and particularly clauses 6, 9 and 11 is to attempt to remove the susceptibility of the NHS to existing competition and procurement legislation. To achieve this aim the system would have to change significantly.
As well as the above changes, we believe that the Department would need to set aside significant levels of contingency budgets in order to allow for the extra costs associated with legal challenges to NHS procurements.
Direct costs would be incurred from; Part 1, clause 2 (new section 2c), subsections (2) - (7)) and clause 6 (new section 9 subsections (18) - (21) and Part 3 clause 12 of this Bill attributed to the Secretary of State for Health being required to:
- Fulfil an amended role in relation to mergers between NHS Trust / Foundation Trust;
- provide guidance on cooperation and social solidarity;
- seek advice from relevant parties and issue directions;
- adjudicate on any complaints they consider appropriate; and,
- deal with any NHS Contract references to arbitration under Section 3.
The Health and Social Care Act 2012 made changes to Monitor’s functions and the Secretary of State’s powers of direction over commissioners. This Bill proposes to make similar changes, albeit opposite to the 2012 Act under Parts 1, 2 and 3 for changes to Monitor’s and the Competition and Market Authority’s (CMA) functions and to reintroduce Secretary of State’s powers of direction over commissioners.
Parts 1, 2 and 3 of this Bill will incur new costs. To fulfil these new Duties, advice would be required from experts from an organisation similar in scale to what is currently spent on competition in Monitor. This function (other than mergers) could be delegated to Monitor, or within the Department, but some redundancy costs could be expected for those not wishing to transfer, or from winding down the function in Monitor if it returned to the Department. For 2013/14 this cost was £1,588,554[1] which included 30 staff. At least this level of cost would be directly incurred in addition to what is currently spent as a result of Part 3, clause 12; Part 1, clause 2, (new section 2c, subsections (2) - (7) and Part 2 clause 6 (new section 9, subsections (18) - (21).
In particular the functions set out in Part 3, clause 12 are currently undertaken by the CMA. Therefore, a similar function would be required to be established to support the Secretary of State in making decisions, as the CMA is likely to retain its existing staff to work on other market investigations. This is because the CMA has a legal duty to refer a merger for an in-depth investigation where:
(a) a relevant merger situation has been created or arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation, and
(b) the creation of that situation has resulted, or may be expected to result, in a substantial lessening of competition within any market or markets for goods or services in the UK.
The Secretary of State would potentially issue guidance on the role of competition and choice, and would have a role in the adjudication of complaints in these matters. At the moment, this role is undertaken by Monitor. This would require a resource in the scale of the Competition and Cooperation Panel that undertook this role prior to the Health and Social Care Act 2012, indicative figures for which are set out above.
Clause 7, (new section 43, subsections 1-6) and clause 8 of the Bill would provide the Secretary of State with the power of direction over the level of NHS Foundation Trust and NHS Trust non-health service patient income.
Private patient income cap
We note that the Bill does not define the level of non-health service patient income which NHS trusts could collect, but note that the Shadow Secretary of State said during the Second Reading of the Bill that (Official Report, 21 November 2014, column 574):
“It reduces the private patient income cap back down to single figures”
Reducing the private income cap to 9% would mean that the following NHS organisations experience a shortfall totalling £50 million as of 2013/14:
PRIVATE PATIENT INCOME | Shortfall in income through loss of funding if the Bill became law | |||
2012-13 | 2013-14 | 2012-13 | 2013-14 | |
% | % | £000's | £000's | |
The Royal Marsden NHS Foundation Trust | 18.6% | 20.1% | 30,893 | 37,499 |
Moorfields Eye Hospital NHS Foundation Trust | 12.2% | 12.3% | 5,004 | 5,686 |
Great Ormond Street Hospital for Children NHS Foundation Trust | 11.1% | 10.1% | 7,829 | 4,602 |
Royal Brompton and Harefield NHS Foundation Trust | 9.1% | 9.9% | 273 | 3,009 |
Total Shortfall | 43,999 | 50,796 | ||
[1] Monitor’s competition functions were established by the Health and Social Care Act 2012. In the transition year 2012-13 Monitor hosted the Cooperation and Competition Panel at a cost of £1,068,099. The cost for 2013-14 also included hosting the Cooperation and Competition Panel.
I thank the Leader of the House for announcing next week’s business. I hope he is not too disappointed that my hon. Friend the Member for Wallasey (Ms Eagle) is unable to be here today—although we are disappointed every week by the continued absence of the Government Chief Whip.
This morning...
I thank the Leader of the House for announcing next week’s business. I hope he is not too disappointed that my hon. Friend the Member for Wallasey (Ms Eagle) is unable to be here today—although we are disappointed every week by the continued absence of the Government Chief Whip.
This morning...
The hon. Gentleman was certainly right with his first sentence: we do miss the shadow Leader of the House. He was spot on with that comment, as she tends to be a little more entertaining. It is a shame because he can be very entertaining when he is not at...
The hon. Gentleman was certainly right with his first sentence: we do miss the shadow Leader of the House. He was spot on with that comment, as she tends to be a little more entertaining. It is a shame because he can be very entertaining when he is not at...
I beg to move, That the House sit in private.
Question put forthwith (Standing Order No. 163).
I beg to move, That the House sit in private.
Question put forthwith (Standing Order No. 163).
Motion that the House sit in private. Negatived on division (1 to 125). Second reading. Closure motion. Agreed to on division (239 to 20). Main question agreed to on division (241 to 18). Bill committed to a Public Bill Committee.
Motion that the House sit in private. Negatived on division (1 to 125). Second reading. Closure motion. Agreed to on division (239 to 20). Main question agreed to on division (241 to 18). Bill committed to a Public Bill Committee.
I thank the hon. Lady for her intervention. The Government have made it possible for trusts to generate half their income from private sources, but it is not true to make out that we are in some way privatising the health service in a way that is detrimental to patients....
I thank the hon. Lady for her intervention. The Government have made it possible for trusts to generate half their income from private sources, but it is not true to make out that we are in some way privatising the health service in a way that is detrimental to patients....
The Act is complicated. It is a big Act and it landed with a thump when the right hon. Member for Wentworth and Dearne (John Healey) dropped it on the Opposition Benches. I think he did so intentionally; and it was very theatrical and effective. It is true that there...
The Act is complicated. It is a big Act and it landed with a thump when the right hon. Member for Wentworth and Dearne (John Healey) dropped it on the Opposition Benches. I think he did so intentionally; and it was very theatrical and effective. It is true that there...
I am always glad to give way to the hon. Gentleman—I am sure he will agree with my every word.
I am always glad to give way to the hon. Gentleman—I am sure he will agree with my every word.
The hon. Gentleman makes my point. I remember when some of his friends went to Boots in Kensington high street and consumed the entire stock of homeopathic medicine. They saw that as a huge triumph, as they felt it illustrated the fact that homeopathic medicine was not effective. Of course...
The hon. Gentleman makes my point. I remember when some of his friends went to Boots in Kensington high street and consumed the entire stock of homeopathic medicine. They saw that as a huge triumph, as they felt it illustrated the fact that homeopathic medicine was not effective. Of course...
Madam Deputy Speaker, you are kind to draw that to my attention. I simply say this: there are different regulatory bodies—not just Monitor—that we should consider. We should be taking on board the fact that osteopaths, chiropractors, homeopaths and doctors are regulated by an Act of Parliament, yet the Health...
Madam Deputy Speaker, you are kind to draw that to my attention. I simply say this: there are different regulatory bodies—not just Monitor—that we should consider. We should be taking on board the fact that osteopaths, chiropractors, homeopaths and doctors are regulated by an Act of Parliament, yet the Health...
We are agreed on that. It is a case of the extent to which we derogate the powers of the Secretary of State. We have a whole lot of new bodies, including clinical commissioning groups, which have been a great success.
I congratulate the hon. Member for Eltham on securing this...
We are agreed on that. It is a case of the extent to which we derogate the powers of the Secretary of State. We have a whole lot of new bodies, including clinical commissioning groups, which have been a great success.
I congratulate the hon. Member for Eltham on securing this...
Does the hon. Gentleman accept that Labour also guaranteed the private sector a fixed slice of NHS income in a way that the Bill does not do?
Does the hon. Gentleman accept that Labour also guaranteed the private sector a fixed slice of NHS income in a way that the Bill does not do?
The right hon. Gentleman is outlining a thread of continuity very well. Is it not strange that the principal adviser to Alan Milburn has now been appointed by this Government as the head of NHS England? Does that not show that there has been continuity from one Government to another...
The right hon. Gentleman is outlining a thread of continuity very well. Is it not strange that the principal adviser to Alan Milburn has now been appointed by this Government as the head of NHS England? Does that not show that there has been continuity from one Government to another...
It is a pleasure to follow the right hon. Member for Wentworth and Dearne (John Healey), and I agree with most of what he said, but probably not the conclusion.
It gives me pleasure that we are having this debate. I think we all accept that the Bill will not go...
It is a pleasure to follow the right hon. Member for Wentworth and Dearne (John Healey), and I agree with most of what he said, but probably not the conclusion.
It gives me pleasure that we are having this debate. I think we all accept that the Bill will not go...
If the hon. Member for Eltham wished to talk about that, we could happily move away from the internal market where local circumstances required and demanded it. That would be an entirely sensible policy. I see no reason, though, why health boards should not procure goods and services based on...
If the hon. Member for Eltham wished to talk about that, we could happily move away from the internal market where local circumstances required and demanded it. That would be an entirely sensible policy. I see no reason, though, why health boards should not procure goods and services based on...
The hon. Gentleman is not altogether wrong, but if we are to continue to deliver, in stressed circumstances, a service that is free at the point of need, we cannot run the NHS as an internal market for ever. In fact, the NHS is already trying to morph into something...
The hon. Gentleman is not altogether wrong, but if we are to continue to deliver, in stressed circumstances, a service that is free at the point of need, we cannot run the NHS as an internal market for ever. In fact, the NHS is already trying to morph into something...
If the right hon. Gentleman reminds me, I will endeavour to do so. What I am really hoping for, though, is a change in the conversation about the NHS so that we stop talking about the internal market—Labour Front Benchers have in a sense reneged on their involvement in that—and...
If the right hon. Gentleman reminds me, I will endeavour to do so. What I am really hoping for, though, is a change in the conversation about the NHS so that we stop talking about the internal market—Labour Front Benchers have in a sense reneged on their involvement in that—and...
My hon. Friend makes a good point. For those who are unsure about the benefits of the internal market, there is a way of addressing the problem, which
is to allow individual health economies, in whatever area—Eltham or wherever—to opt out of the internal market if they can prove that...
My hon. Friend makes a good point. For those who are unsure about the benefits of the internal market, there is a way of addressing the problem, which
is to allow individual health economies, in whatever area—Eltham or wherever—to opt out of the internal market if they can prove that...
I beg to move, That the Bill be now read a Second time.
Today we begin to restore the sovereignty of this House over our national health service. We begin to put patients at the heart of decision making. We will restore the responsibility of the Secretary of State to promote...
I beg to move, That the Bill be now read a Second time.
Today we begin to restore the sovereignty of this House over our national health service. We begin to put patients at the heart of decision making. We will restore the responsibility of the Secretary of State to promote...
I congratulate the hon. Gentleman on being so lucky in the draw. He has referred to competition. Does he not accept that Labour did much more than he is suggesting? The then Secretary of State, who is now the shadow Secretary of State, privatised an entire hospital in the east...
I congratulate the hon. Gentleman on being so lucky in the draw. He has referred to competition. Does he not accept that Labour did much more than he is suggesting? The then Secretary of State, who is now the shadow Secretary of State, privatised an entire hospital in the east...