Tuesday, 6 June 2017

Lancashire hospital board employ controversial private firm in financial rescue plan

Chorley hospital trust board pay private firm who advocate charging NHS patients.

The trust running Chorley & South Ribble hospital and Preston hospital are paying private management consultants 'McKinsey' to draw up a financial rescue plan. 

In their June board report, the  Lancashire Teaching Hospitals NHS Trust, that covers hospitals in Chorley and Preston, claim that if the 'plan' is successful it will deliver a 'stretched' target of £34m to cover additional costs of A&E changes as well as the costs to McKinsey.

In their June (2017) report, the Lancashire hospital trust claim it is experiencing cashflow difficulties and has a 'high' backlog of creditors awaiting payment. They state they have a deficit driven by additional costs associated with Emergency Department (ED) changes and are unable to achieve Sustainability and Transformation Funding (STF). The resulting financial impact is around £5m per month.

Looking outside their organisation, the hospital trust are now seeking a solution to their financial problems from McKinsey, a global consultancy firm who in the past advocated charging NHS patients for treatment.

Private consultancy firms such as McKinsey have been central to the successive government plans to carve up the National Health Service (NHS). One service they provide is supposed “consultation” processes, which end up concocting a financial case for the closure and privatisation of swathes of the NHS and handing it over to their clients in the private sector. They reap rich rewards themselves for services rendered. McKinsey also helped draw up the NHS privatisation bill (H&SC bill 2012)

The undisclosed amount paid by Lancashire teaching hospitals trust to McKinsey could eat into a large part of the hospital boards budget leaving less money available to provide quality services. The trust were recently awarded a score of 'requires improvement' by the Care Quality Commission (CQC) for the second successive time running.

Links/Further Info....
Lancs Teaching Hospital NHS Trust June Board report [PDF]

NHS should charge patients, say McKinsey consultants

McKinsey helped draw up the NHS privatisation bill (H&SC bill 2012)

McKinsey helped draft both the government's £20bn "efficiency" savings and the pro-privatisation health bill (H&SC bill 2012)

McKinsey advises severe cuts – to public spending

The firm that hijacked the NHS: MoS investigation reveals extraordinary extent of international management consultant's role in Lansley's health reforms