The reinvention of failure
Existing health services are being deliberately destabilised to pave the way for an ideologically driven privatisation programme
John Lister
How is it that with spending on the NHS now running at double the level of 1997, the service is running into an autumn crisis, with debts totalling at least £750m, bed closures, theatres closed, services cut and estimates of 8,000 or more redundancies?
The answer lies in the breakneck process of "modernisation", under which existing services are being deliberately destabilised to establish a competitive market system incorporating for-profit private providers, in place of a planned system of public healthcare.
Under John Major the NHS was buying less than £200m worth of treatment from private hospitals a year. This will have increased 10-fold by 2007. Up to 15% of elective surgery will be hived off to private hospitals, leaving NHS trusts to cover the remainder.
Hospital buildings have also been privatised: private finance initiative schemes worth more than £5bn have been completed since 1997 or are being built, and another £12bn of projects are under negotiation - all of them locking trusts into costly, long-term leasehold deals.
But while New Labour ministers press relentlessly on, opposition is starting to coalesce. Last week in London a group of consultants, academics, MPs and trade-union officials met to plan a "save our NHS" coalition against these "stealth reforms", which have little public support - a recent poll showed 89% against private provision of NHS care - and are little reported or discussed.
That is likely to change in the autumn as huge, unprecedented budget deficits - and cuts in services - begin to take shape alongside the new competitive health market.
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