Project NHS England

Presenter SajedPresentation Date: 14/10/2015

NHS Overview

The NHS was launched in 1948.More than 64.1 million people in the UK ,53.9 million people in England.The NHS in England deals with over 1 million patients every 36 hours.

NHS employs more than 1.6 million people, putting it in the top five of the world’s largest workforces together with the US Department of Defence, McDonalds, Walmart and the Chinese People’s Liberation Army.

NHS England• NHS in England, catering to a population of 53.9

million, employing 1.3 million people.

• Of those, clinically qualified staff 40,236 general practitioners 351,446 nurses, 18,576 ambulance staff, and 111,963 hospital and community health service.

• NHS in Scotland, Wales and Northern Ireland employs 159,748; 84,817 and 62,603 people respectively.

NHS UK Market

• FundingFunding for the NHS comes directly from taxation.

When the NHS was launched in 1948, it had a budget of £437 million (roughly £9 billion at today’s value).

For 2015/16, it was around £115.4 billion.  

2012/2013• 108 bn

2013/2014• 112 bn

2015/2016• 116 bn

NHS Budget

Nhs ContractorsPrivate health firms are on course to win more than £9bn.

Companies such as Bupa, Virgin Care and Care UK have so far won a total of 131 contracts worth a combined £2.6bn to provide NHS services since the Health and Social Care Act .

They have won two out of three of the 195 contracts awarded by NHS bodies in England in the 19 months since that legislation dramatically extended the enforced tendering of services in the NHS.

Nhs Contracts

Researchers tracking the awarding of NHS contracts say that, if the private sector continues its 50% win rate by value, it will earn a potential £6.6bn more of the £13bn of other contracts which have been advertised but not yet awarded.

That would result in private firms earning £9.2bn as a direct result of the changes ushered in by then health secretary Andrew Lansley’s restructuring of the NHS, which a cabinet minister recently described as the coalition’s biggest mistake.

£18.3bn of services tendered, £1bn elective surgery, diagnostics (£1.2bn), community care services (£1.9bn), musculo-skeletal care (£785m), ambulance (£583m) and pharmacy (£558m).

NHS Contractors Private companies have consistently won the lions share of awards.• G4S • Lockheed Martin• Circle Healthcare• Virgin Care• Diaverum – a Swedish-owned• Bupa• CSH, a social enterprise • Care UK

Nhs Winners

• Circle Healthcare 285.9m (two contracts)

• Virgin Care £182.5m (two contracts)

• Diaverum UK Limited £150m (three contracts)

• Bupa £132.1m (three contracts)

• Care UK £104m (three contracts)

Nhs Winners• The five biggest contracts by value :

£235m Bupa together with CSH, a social enterprise, for

musculo-skeletal services in West Sussex

£225.8m Pathology First LLP and Facilities First LLP, for

providing pathology services to Basildon and Thurrock

£150m Diaverum UK Limited, kidney dialysis University

Hospitals Birmingham NHS

£141.1m Care UK with St George’s Healthcare NHS Trust, for

offender healthcare (with NHS England)

£131m Virgin Care, for paediatric services on behalf of NHS

NorthernEastern and Western Decon clinical commissioning group

Nhs Contractor’s Tory Party Donars

• Private health care firms with Tory links have been awarded NHS contracts worth nearly £1.5billion.

• Circle Health landed £1.36billion worth of health service work after several of its investors gifted about £1.5million to the Conservatives.

• And Care UK has contracts worth another £102.6million. Its chairman John Nash was made a peer after boosting Tory coffers by £247,250

Nhs Contractors Tory Party Donars

• Circle Health’s parent company, Circle Holdings PLC, is owned by a series of hedge funds.

• Lansdowne Partners, with a 29.2% stake, was founded by Sir Paul Ruddock, who donated £692,592 to the Tories.

• David Craigen, who gave the party £59,000, is also involved in Lansdowne.

• Invesco Perpetual owns 28.7% of Circle Holdings. It was set up by Sir Martyn Arbib, who donated £466,330.

Nhs Winners

• The 11 firms stand to pocket up to £780million between now and December 2018.

• It beats the previous record NHS privatisation deal, which led to Virgin Care winning a £500million contract to provide community services in Surrey until 2017.

• The NHS Business Services Authority, which oversees NHS Supply Chain, said the deal broke down to five contracts with maximum values of £240million, £160million, £240million, £80million and £60million, adding up to £780million.

Nhs Virgin care• Virgin boss Sir Richard Branson bids to take over cancer and end of

life care in NHS privatisation deal worth £1.2billion• Five bidders, including Sir Richard's Virgin Care Ltd, have now been

short-listed for cancer care-while seven companies, including Virgin Care Ltd, are in the running for end-of-life services.

• The University Hospitals of North Midlands, The Royal Wolverhampton NHS Trusts are the only public sector bodies.

• IT firm CSC Computer Sciences Ltd, private health provider United Health UK and PFI specialists Interserve Investments have also made the short list.

• Risk of private health providers putting profits before patient care.

• Gail Gregory, from campaign group Cancer Not For Profit, said: 'I'm actually

Nhs Pharmacuticals• The CMU supports the NHS and other external stakeholders in areas of medicines contracting.

• homecare medicines

• branded medicines

• generic medicines

• dose banding

• blood products

• nutrition / enteral products

• childhood and other vaccines (UK wide)

• pharmaceutical countermeasures

• delivery of procurement

• savings

• securing the benefits of the transition from branded to off patent medicines

• information and analysis of expenditure

• electronic flow of data

• automation

• electronic trading

• Supply Chain excellence

Nhs Pharmacuticals

• Before a medicine can be widely used in the UK, it must first be granted a licence.

• Pharmaceutical firms appear to have rigged the market in so-called "specials" – prescription drugs that are largely not covered by national NHS price regulations. The scandal revolves around the supply of drugs that cost the NHS around £120 million a year. Temag, Quantum biggest drug firms.

• Patients in England collected over 1.1 billion prescription items in 2014, according to NHS figures.

Most common nhs drugs

• Simvastatin was the most commonly prescribed drug in England in 2014, with 37.8 million items dispensed at a NIC of £50.6m. The top 20 most commonly prescribed medicines were dominated by heart drugs, painkillers, asthma inhalers, proton-pump inhibitors, antibiotics and antidepressants.

The NHS in England spent £8.81 billion for all of its prescription medicines in primary care last year, a 0.1% drop compared to the £8.83 billion spent in 2010. 

NHS Property Services

• NHS Property Services Ltd was set up by the Department of Health to manage all the ex-Primary Care Trust estate not transferred to provider.

• NHS Property Services is 100% owned by the Secretary of State and in turn owns the legal title to 3,500 assets, valued at around £3 billion. The organisationowns sites across England but retains a local focus providing strategic and operational management of NHS estates, property and facilities.

NHS property services

• Provide two main types of services to our NHS customers:

• Strategic estate and asset management – strategic planning of the estate, acting as a landlord, modernising facilities, buying new facilities and selling facilities that NHS commissioners decide they no longer need

• Dedicated provider of support and facilities services, such as health and safety, maintenance, electrical, cleaning and catering

NHS property doing business (procurement@property.nhs.uk)• NHS Property Services buys goods, works and services from a

wide range of suppliers and service providers and awards contracts to those who meet NHS Property Services requirements and standards. Contracts can range from small one-off purchases up to multi-million pound service contracts lasting several years.

• What NHS Property Services buys

• Goods / supplies

• Services

• Works, including capital programme

Opportunity

• Acquire share’s in these companies.

• Change from public to private limited.

• Create new companies to offer the same services and bid for contracts.

• Opportunity exits to have our share of the 116 bn sterling.