Will the NHS stop wasting money?
Posted by Ian at 7 30 AM on Sunday, July 25
A POWERFUL new watchdog will be given powers to stop hospitals and NHS Trusts wasting money this week.
The new economic regulator will stop NHS Trusts spending over the odds on contracts with private health companies.
Figures unearthed by Health Secretary Andrew Lansley reveal that the NHS wasted a staggering £305m buying healthcare from private companies that could have been obtained cheaper on the NHS.
Labour ministers at the time claimed that revealing the overspend would, “jeopardise the ability of the Department and the NHS to secure the best value for money.”
The contracts are binding until March 2017.
The new regulator will be able to rip up contracts like this and will force NHS Trusts to take the cheapest options available.
Andrew Lansley is currently investigating whether better value-for-money can be achieved in all active NHS contracts.
Last night Mr Lansley said: “It is unsurprising that Labour refused to make this figure public, given their failure to deliver value-for-money in these contracts.
“Independent sector providers have an important role to play in improving patient care in the NHS but they must compete on a level playing field with other providers.
“I am determined that the NHS should get the best quality care for patients and the best value-for-money for taxpayers.
“Proposals for a new regulator set out in our White Paper will encourage new providers and value-based competition amongst NHS providers.
“The regulator will stop the kind of wasteful preferential contracts with the private sector which Labour signed”.